Calcot 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 becomes more expensive. The majority of owners of residential leasehold property in Calcot enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Calcot you must see if your lease has between seventy and 90 years left. There are good reasons why a Calcot leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Calcot leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ryan owned a studio flat in Calcot being sold with a lease of just over 59 years outstanding. Ryan on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ryan to invoke his statutory right. Ryan procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
Dr M Rogers completed a ground floor flat in Calcot in February 2008. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar premises in Calcot with 100 year plus lease were worth £210,000. The mid-range ground rent payable was £50 invoiced per annum. The lease terminated in 2106. Taking into account 80 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.
Last Summer we were called by Mr and Mrs. K Díaz , who bought a one bedroom flat in Calcot in August 1997. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparative premises in Calcot with an extended lease were worth £275,000. The average amount of ground rent was £45 collected yearly. The lease expired on 9 February 2095. Taking into account 69 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.