Carterton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Carterton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Carterton you should investigate if your lease has between 70 and ninety years left. There are compelling reasons why a Carterton leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Carterton can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Carterton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of protracted correspondence with the landlord of her leasehold apartment in Carterton, Isabella started the lease extension process as the eighty year mark was fast advancing. The legal work was finalised in September 2007. The freeholder’s costs were negotiated to less than five hundred GBP.
In 2012 we were called by Mr and Mrs. A Patel who, having owned a studio flat in Carterton in August 2012. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical flats in Carterton with 100 year plus lease were valued around £295,000. The average ground rent payable was £45 invoiced monthly. The lease termination date was on 5 November 2100. Having 74 years remaining we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.
In 2014 we were called by Dr Laura White who, having bought a garden apartment in Carterton in June 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Comparable properties in Carterton with a long lease were valued around £243,000. The average ground rent payable was £65 billed quarterly. The lease terminated in 2089. Considering the 63 years left we estimated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 not including costs.