Callington leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Callington enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Callington you should check if your lease has between 70 and ninety years left. There are good reasons why a Callington flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Callington,the lease extension experts that we work with will always be willing 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.
After protracted negotiations with the landlord of her purpose-built flat in Callington, Rosie started the lease extension process just as her lease was coming close to the crucial 80-year mark. The legal work was finalised in June 2008. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were approached by Dr E Brooks who, having took over the lease of a basement flat in Callington in September 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Callington with 100 year plus lease were worth £267,600. The average ground rent payable was £65 invoiced quarterly. The lease ended in 2092. Having 67 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of expenses.
Last Winter we were e-mailed by Mr and Mrs. V Roux , who owned a ground floor apartment in Callington in February 1996. We are asked if we could approximate the price could be for a 90 year lease extension. Similar homes in Callington with a long lease were valued about £206,200. The average ground rent payable was £60 billed per annum. The lease finished on 23 February 2081. Taking into account 56 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.