The re-sale value of a leasehold property in Carlisle depends on how many years the lease has left to run. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be addressed ahead of the 80 year cut off point. Statute entitles Carlisle qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Carlisle leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
James owned a studio flat in Carlisle being marketed with a lease of a little over 72 years left. James informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were James to exercise his statutory right. James procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mrs N Simon bought a garden apartment in Carlisle in August 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Carlisle with a long lease were worth £235,600. The average amount of ground rent was £60 billed yearly. The lease expired in 2087. Having 62 years unexpired we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus legals.
In 2011 we were phoned by Mr G Edwards who, having moved into a basement apartment in Carlisle in August 2001. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Similar properties in Carlisle with 100 year plus lease were worth £174,200. The average amount of ground rent was £55 collected every twelve months. The lease elapsed in 2076. Considering the 51 years unexpired we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including expenses.