Callerton leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Callerton will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain situations you may not qualify. There are also strict timetables and formalities to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Callerton with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Callerton,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Callerton valuers.
Dexter owned a studio flat in Callerton being sold with a lease of a few days over sixty years left. Dexter on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Dexter to invoke his statutory right. Dexter obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Christmas we were phoned by Dr Aaron Petit , who owned a studio apartment in Callerton in May 2001. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparable homes in Callerton with a long lease were valued around £280,000. The mid-range ground rent payable was £45 collected per annum. The lease concluded in 2094. Having 69 years unexpired we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
Mr and Mrs. A Lee purchased a purpose-built flat in Callerton in September 2004. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Comparative premises in Callerton with 100 year plus lease were in the region of £216,000. The mid-range ground rent payable was £60 collected per annum. The lease expiry date was in 2083. Having 58 years unexpired we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of fees.