There is no doubt about it a leasehold flat or house in Callington is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner than later. Most flat owners in Callington will qualify for this right; however a conveyancing solicitor can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service will provide you enhanced control over the value of your Callington leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the landlord of her one bedroom flat in Callington, Maisie initiated the lease extension process as the eighty year deadline was rapidly nearing. The transaction completed in October 2011. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were e-mailed by Dr B Ward who, having moved into a first floor apartment in Callington in September 2011. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Identical premises in Callington with a long lease were valued around £280,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease concluded on 7 January 2095. Having 70 years as a residual term we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.
Dr Sam Alexander took over the lease of a one bedroom flat in Callington in October 2012. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Comparative premises in Callington with an extended lease were worth £223,400. The mid-range ground rent payable was £60 invoiced quarterly. The lease end date was in 2084. Having 59 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 plus expenses.