Callington leases on residential deteriorating in value. if your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Callington will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not qualify. There are also strict timetables and procedures to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Nationwide Building Society |
Engaging our service will provide you enhanced control over the value of your Callington leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Kian owned a 2 bedroom flat in Callington being sold with a lease of just over fifty eight years left. Kian informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Kian to exercise his statutory right. Kian procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
In 2011 we were contacted by Ms Robyn Cox who, having owned a studio apartment in Callington in January 2008. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable properties in Callington with 100 year plus lease were in the region of £240,600. The average ground rent payable was £60 invoiced every twelve months. The lease elapsed in 2088. Considering the 62 years left we approximated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus expenses.
Last Christmas we were contacted by Dr F Bonnet , who took over the lease of a first floor flat in Callington in January 2005. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Similar premises in Callington with 100 year plus lease were worth £174,200. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ran out in 2077. Considering the 51 years remaining we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including expenses.