The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Calcot may extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do think carefully before delaying your Calcot lease extension. Shelving the costs now simply increases the amount you will eventually be required to pay to extend the lease.
Leasehold properties in Calcot with in excess of 100 years left on the lease are sometimes referred to as ‘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 buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Calcot leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Dylan was the the leasehold owner of a conversion apartment in Calcot on the market with a lease of a few days over 61 years outstanding. Dylan on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Dylan to exercise his statutory right. Dylan procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Ms D Simon purchased a one bedroom flat in Calcot in June 2002. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Similar flats in Calcot with an extended lease were worth £285,000. The mid-range ground rent payable was £45 invoiced yearly. The lease terminated on 3 November 2098. Taking into account 72 years unexpired we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.
Dr Bethany Adams moved into a newly refurbished flat in Calcot in October 2004. We are asked if we could approximate the premium would be for a 90 year lease extension. Identical premises in Calcot with 100 year plus lease were in the region of £233,200. The average amount of ground rent was £60 billed per annum. The lease lapsed in 2087. Given that there were 61 years left we calculated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including legals.