As the the remaining lease term of a Callington residential lease decreases so does its value and therefore the value of your property. If the lease has, beyond one hundred years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. Many flat owners in Callington will meet the qualifying criteria; that being said a lawyer should be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Callington can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Callington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted correspondence with the landlord of her one bedroom flat in Callington, Francesca started the lease extension process as the eighty year mark was rapidly advancing. The transaction was finalised in February 2007. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were approached by Mr and Mrs. L Smith who, having acquired a garden apartment in Callington in January 2008. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable homes in Callington with a long lease were worth £198,800. The mid-range amount of ground rent was £55 collected quarterly. The lease terminated on 8 July 2081. Given that there were 55 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of professional charges.
In 2013 we were phoned by Mr and Mrs. I Leroy who, having bought a first floor apartment in Callington in March 2001. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Callington with an extended lease were valued around £300,000. The average ground rent payable was £50 invoiced annually. The lease finished on 21 May 2101. Given that there were 75 years remaining we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.