Callerton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Callerton tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Callerton you would be well advised to investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 |
Lease extensions in Callerton can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Callerton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jackson was the the leasehold owner of a conversion apartment in Callerton on the market with a lease of a little over sixty years outstanding. Jackson informally approached his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be due on a lease extension were Jackson to exercise his statutory right. Jackson procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last Christmas we were contacted by Mrs Jennifer Phillips , who took over the lease of a one bedroom apartment in Callerton in August 1995. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative homes in Callerton with 100 year plus lease were worth £171,800. The average ground rent payable was £55 collected yearly. The lease came to a finish in 2075. Considering the 50 years unexpired we calculated the premium to the landlord to extend the lease to be within £33,300 and £38,400 not including fees.
Last Summer we were contacted by Dr W Moore , who owned a one bedroom apartment in Callerton in August 2002. The question was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative flats in Callerton with 100 year plus lease were valued about £280,000. The average ground rent payable was £45 invoiced every twelve months. The lease finished in 2095. Taking into account 70 years left we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.