Callington leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Callington enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Callington you really ought to check if your lease has between 70 and ninety years left. There are good reasons why a Callington flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is effected without delay
Leasehold residencies in Callington with more than 100 years outstanding 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Callington can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor 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 Callington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted negotiations with the freeholder of her garden apartment in Callington, Courtney initiated the lease extension process just as the lease was coming close to the crucial 80-year threshold. The lease extension completed in July 2006. The landlord’s costs were restricted to below 650 GBP.
Dr Erin Evans purchased a first floor flat in Callington in June 2010. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative residencies in Callington with an extended lease were valued around £243,000. The average amount of ground rent was £65 invoiced yearly. The lease lapsed in 2087. Having 63 years remaining we estimated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus legals.
Last July we were phoned by Ms M Garcia , who owned a studio apartment in Callington in April 2006. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in Callington with an extended lease were valued around £181,600. The mid-range amount of ground rent was £55 billed yearly. The lease terminated in 2076. Given that there were 52 years remaining we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of professional charges.