Why you should commence your Calcot lease extension

Why you should start your Calcot lease extension today:

A Calcot leasehold property depreciates with the years remaining on the lease.

The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Calcot have the legal entitlement to extend the lease for a further 90 years under legislation. Do give careful consideration before delaying your Calcot lease extension. Putting off the costs now simply escalates the premium you will ultimately have to pay for a lease extension.

Calcot property with a lease extension has roughly the same value as a freehold

Leasehold premises in Calcot with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.

Lenders may not issue a mortgage with a short lease

The propensity since 2008 has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past mortgage companies were content with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Calcot lease extension solicitors or enfranchisement solicitors

Retaining 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 wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Calcot Lease Extension Case Studies:

Nathaniel, Calcot, Berkshire,

Nathaniel was the the leasehold proprietor of a high value apartment in Calcot being marketed with a lease of just over fifty eight years unexpired. Nathaniel on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel obtained expert advice and secured an acceptable deal informally and sell the flat.

Calcot case:

Last Spring we were approach by Mr and Mrs. V Alexander , who completed a one bedroom apartment in Calcot in September 2010. The dilemma was if we could estimate the price could be to extend the lease by an additional years. Similar premises in Calcot with an extended lease were valued around £290,000. The average ground rent payable was £45 billed annually. The lease terminated on 2 September 2099. Having 73 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.

Calcot case:

Mr and Mrs. C González moved into a one bedroom flat in Calcot in March 2010. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparable premises in Calcot with an extended lease were in the region of £235,600. The mid-range ground rent payable was £60 collected yearly. The lease finished on 25 November 2088. Taking into account 62 years remaining we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including expenses.