For anyone whose Carshalton home is held on a long lease, our message is clear – if you ignore the situation, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
It is conventional wisdom 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 ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
The lawyers that we work with procure Carshalton 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.
After lengthy negotiations with the freeholder of her one bedroom flat in Carshalton, Imogen commenced the lease extension process as the 80 year threshold was fast advancing. The legal work was concluded in March 2006. The freeholder’s costs were restricted to approximately 550 GBP.
Mr and Mrs. K Walker bought a purpose-built flat in Carshalton in January 2010. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Identical homes in Carshalton with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 billed per annum. The lease came to a finish in 2097. Considering the 72 years remaining we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Carshalton flat 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 affected 2 flats. The unexpired term was 72 years.