Callington Lease Extension - Free Consultation

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Why you should start your Callington lease extension


Top reasons for lease extension now:

Increase your lease and increase your Callington property value

With a long leasehold property in Callington, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Residents in Callington with a lease nearing 81 years remaining should seriously think of extending it without delay. Once a lease has below 80 years left, under the current Act the landlord is entitled to calculate and charge a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Lenders may not loan monies on a short lease

Mortgage companies are really restricting their approach as regards to properties in Callington with short leases. For example you may find that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so where you wanted to sell, your only options would be to find a cash buyer, or hope for the best at auction thus restricting your market.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

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;
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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.
Halifax Minimum 70 years from the date of the mortgage.

Why use us for your lease extension in Callington?

Retaining our service gives you better control over the value of your Callington leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Callington Lease Extension Case Studies:

Matthew, Callington, Cornwall,

Matthew was the the leasehold proprietor of a conversion flat in Callington being marketed with a lease of just over fifty eight years unexpired. Matthew informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Matthew to invoke his statutory right. Matthew procured expert advice and secured an acceptable resolution without going to tribunal and readily saleable.

Callington case:

Mr O Wood owned a garden flat in Callington in March 1995. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Similar homes in Callington with an extended lease were worth £171,800. The mid-range ground rent payable was £55 invoiced quarterly. The lease came to a finish in 2075. Considering the 50 years left we approximated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus fees.

Callington case:

Mr and Mrs. S Fournier acquired a first floor apartment in Callington in March 2004. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical premises in Callington with 100 year plus lease were valued around £280,000. The average ground rent payable was £45 invoiced monthly. The lease terminated in 2095. Considering the 70 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.