Callington residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold premises in Callington with more than 100 years remaining 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Callington,the lease extension experts 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.
Off the back of lengthy negotiations with the landlord of her one bedroom apartment in Callington, Jordan started the lease extension process as the eighty year deadline was quickly nearing. The transaction was concluded in June 2015. The landlord’s charges were kept to an absolute minimum.
Last year we were contacted by Mr and Mrs. E Walker , who was assigned a lease of a garden apartment in Callington in March 2011. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Similar residencies in Callington with 100 year plus lease were worth £257,800. The mid-range amount of ground rent was £65 billed annually. The lease termination date was on 10 March 2091. Taking into account 65 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including costs.
Last year we were e-mailed by Dr E Girard , who completed a one bedroom flat in Callington in April 2003. The question was if we could approximate the price would likely be to extend the lease by 90 years. Identical properties in Callington with a long lease were in the region of £191,400. The mid-range ground rent payable was £55 billed every twelve months. The lease ran out in 2080. Having 54 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 plus costs.