Carshalton residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
Leasehold premises in Carshalton with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Carshalton can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in this area.
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 procuring Carshalton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the freeholder of her basement flat in Carshalton, Grace started the lease extension process just as her lease was nearing the crucial 80-year mark. The transaction was concluded in March 2011. The landlord’s charges were kept to an absolute minimum.
Last Summer we were approach by Mr and Mrs. V Ward , who was assigned a lease of a basement flat in Carshalton in June 1997. The question was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Comparable premises in Carshalton with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 collected every twelve months. The lease ended in 2096. Given that there were 71 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.
An example of a Freehold Enfranchisement decision for a Carshalton premises is 21 & 23 Carshalton Grove in May 2009. the Tribunal adopted the figures presented as the premiums payable by the Applicant i.e. a total of £20,750. This case was in relation to 2 flats. The unexpired term was 72 years.