On the balance of probabilities where you own a flat in Carlisle you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 |
Lease extensions in Carlisle can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Carlisle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Jayden, started to get near to the eighty-year threshold with the lease on his leasehold flat in Carlisle. Having bought his property twenty years previously, the lease term was of minimal importance. As luck would have it, he became aware that he would imminently be paying an escalated premium for Extending the lease. Jayden arranged for a lease extension just under the wire in August. Jayden and the landlord who owned the flat above in the end agreed on sum of £5,500 . If the lease had slid below 80 years, the amount would have become more costly by at least £1,000.
Mr and Mrs. L Ali completed a purpose-built apartment in Carlisle in April 2005. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar properties in Carlisle with 100 year plus lease were in the region of £252,800. The average ground rent payable was £65 invoiced yearly. The lease ended in 2090. Taking into account 65 years unexpired we estimated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 not including costs.
Dr N Bell purchased a garden apartment in Carlisle in July 2000. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar premises in Carlisle with a long lease were in the region of £191,400. The mid-range ground rent payable was £55 collected monthly. The lease expired in 2079. Taking into account 54 years left we calculated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 not including professional charges.