When it comes to long leasehold premises in Carterton, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Leasehold owners in Carterton with a lease drawing near to 81 years left should seriously consider extending it without delay. Once a lease has under 80 years left, under the current statute the freeholder is entitled to calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Carterton with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Carterton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Mason was the the leasehold owner of a high value flat in Carterton on the market with a lease of just over 61 years remaining. Mason informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Mason to exercise his statutory right. Mason procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2013 we were contacted by Ms Lily Cooper who, having took over the lease of a first floor flat in Carterton in April 1999. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Identical homes in Carterton with an extended lease were valued around £225,800. The mid-range ground rent payable was £60 invoiced annually. The lease ran out on 3 January 2085. Considering the 60 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of professional charges.
In 2010 we were e-mailed by Mr and Mrs. Y Collins who, having moved into a first floor flat in Carterton in March 2008. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Identical premises in Carterton with a long lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced yearly. The lease concluded in 2105. Considering the 80 years left we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.