Callington leases on residential deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the current lease dips below eighty years - otherwise a higher amount will be due. Flat owners in Callington will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and procedures to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Callington with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Callington,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Callington valuers.
In the wake of 6 months of unsuccessful discussions with the freeholder of her studio flat in Callington, Francesca initiated the lease extension process just as her lease was nearing the all-important eighty-year deadline. The transaction completed in August 2014. The landlord’s charges were restricted to slightly above 450 GBP.
In 2013 we were contacted by Dr F Young who, having owned a studio apartment in Callington in October 2006. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical homes in Callington with a long lease were valued about £171,800. The average amount of ground rent was £55 collected annually. The lease expiry date was on 17 October 2076. Given that there were 50 years unexpired we calculated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 not including fees.
Last Winter we were e-mailed by Ms Lydia Johnson , who owned a recently refurbished flat in Callington in November 2007. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable premises in Callington with a long lease were in the region of £280,000. The average amount of ground rent was £45 billed quarterly. The lease lapsed on 28 March 2096. Taking into account 70 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.