With a residential leasehold premises in Callington, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Leasehold owners in Callington with a lease approaching 81 years left should seriously consider extending it sooner than later. When a lease has under eighty years remaining, under the relevant statute the freeholder is entitled to calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Callington with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Callington leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful correspondence with the freeholder of her basement apartment in Callington, Aimee commenced the lease extension process as the eighty year threshold was swiftly approaching. The legal work was concluded in February 2006. The freeholder’s fees were restricted to a tad over 700 GBP.
Dr M Harris bought a purpose-built apartment in Callington in April 2006. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparable residencies in Callington with a long lease were in the region of £200,000. The average amount of ground rent was £50 collected annually. The lease ended in 2103. Considering the 77 years outstanding we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.
In 2009 we were e-mailed by Mr and Mrs. L Campbell who, having owned a one bedroom apartment in Callington in September 2001. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable properties in Callington with a long lease were in the region of £265,200. The average amount of ground rent was £65 collected monthly. The lease lapsed on 10 November 2092. Given that there were 66 years remaining we calculated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of fees.