Calstock leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Calstock tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Calstock you really ought to investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a Calstock flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is actioned without delay
Leasehold residencies in Calstock with over 100 years remaining 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Calstock 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.
Last October Sam, came precariously close to the 80-year threshold with the lease on his leasehold apartment in Calstock. In buying his property two decades ago, the lease term was of minimal significance. Luckily, it dawned on him that he needed to take action soon on a lease extension. Sam was able to extend his lease just ahead of time in April. Sam and the freeholder subsequently agreed on the final figure of £5,500 . If the lease had gone below eighty years, the sum would have become more costly by a minimum £975.
Mr P Walker bought a first floor flat in Calstock in March 2008. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in Calstock with an extended lease were worth £254,200. The mid-range amount of ground rent was £60 invoiced annually. The lease finished in 2076. Given that there were 51 years outstanding we calculated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 plus fees.
Mr and Mrs. O Collins bought a one bedroom apartment in Calstock in April 2009. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Comparative properties in Calstock with an extended lease were worth £210,600. The mid-range ground rent payable was £45 billed quarterly. The lease came to a finish on 8 January 2087. Having 62 years left we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of expenses.