Why you should commence your Callington lease extension

Top reasons for lease extension now:

A Callington leasehold property depreciates with the years remaining on the lease.

Callington residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.

An extended lease has roughly the same value as a freehold

Leasehold premises in Callington with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders may not loan monies on a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to become jittery at around 75 years. This may be problematic when you come to dispose of or refinance your flat as it will be effectively unmortgageable. Even though you might not have an imminent desire to sell but when you do your purchaser must wait two years before being able to start the legal procedures for an extension to the lease.

Why use us for your lease extension in Callington?

Irrespective of whether you are a tenant or a freeholder 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 experience and the close ties they enjoy with Callington valuers.

Callington Lease Extension Case Studies:

David, Callington, Cornwall

Half a year ago David, came seriously near to the eighty-year threshold with the lease on his purpose- built flat in Callington. Having bought his flat two decades ago, the lease term was of no significance. Thankfully, he recognised he needed to take steps soon on Extending the lease. David was able to extend his lease just in the nick of time in March. David and the freeholder via the managing agents subsequently agreed on a premium of £5,000 . If the lease had dropped to less than eighty years, the figure would have gone up by a minimum £975.

Callington case:

In 2013 we were e-mailed by Dr Ellen Reed who, having moved into a one bedroom apartment in Callington in June 2005. The question was if we could approximate the price would be for a 90 year extension to my lease. Identical homes in Callington with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 collected annually. The lease ended on 11 May 2084. Taking into account 58 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.

Callington case:

In 2011 we were phoned by Mr and Mrs. B Bailey who, having was assigned a lease of a garden flat in Callington in April 1999. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparative flats in Callington with 100 year plus lease were valued around £205,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ran out in 2104. Taking into account 78 years remaining we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.