Chances are that if you own a flat in Callington you actually own a long leasehold interest over your property
Leasehold properties in Callington with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Callington leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish 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.
Trailing lengthy correspondence with the freeholder of her leasehold flat in Callington, Kayleigh initiated the lease extension process as the eighty year threshold was rapidly coming. The lease extension was finalised in February 2011. The freeholder’s charges were restricted to under 550 pounds.
In 2014 we were e-mailed by Mr Toby Pérez who, having moved into a ground floor flat in Callington in August 2002. The dilemma was if we could estimate the price could be to prolong the lease by 90 years. Identical homes in Callington with 100 year plus lease were valued around £248,000. The mid-range ground rent payable was £65 billed quarterly. The lease ran out in 2089. Considering the 63 years left we calculated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 plus fees.
Last February we were phoned by Mr and Mrs. H Rivera , who purchased a ground floor apartment in Callington in June 2011. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparative residencies in Callington with an extended lease were worth £181,600. The mid-range ground rent payable was £55 billed annually. The lease elapsed on 24 February 2078. Taking into account 52 years remaining we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including costs.