The re-sale value of a leasehold property in Calcot depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension before buying. Ideally one should start the lease extension process when the lease still has 82 years to run so that all matters can be finalised well before the eighty year cut off point. Statute enables Calcot qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
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 further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Calcot leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Michael owned a studio apartment in Calcot being sold with a lease of a little over fifty eight years left. Michael informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Michael to invoke his statutory right. Michael procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
In 2013 we were called by Mr Seth Carter who, having took over the lease of a first floor flat in Calcot in January 2008. We are asked if we could estimate the price would be for a ninety year extension to my lease. Similar properties in Calcot with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 billed monthly. The lease lapsed in 2105. Having 79 years outstanding we calculated the premium to the landlord for the lease extension to be within £7,600 and £8,800 exclusive of fees.
In 2014 we were called by Mr and Mrs. U Girard who, having bought a first floor flat in Calcot in August 2008. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative premises in Calcot with an extended lease were in the region of £270,000. The mid-range ground rent payable was £65 billed quarterly. The lease lapsed on 19 May 2094. Considering the 68 years remaining we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.