Callington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Callington tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Callington you must see if your lease has between 70 and 90 years left. There are good reasons why a Callington flat owner with a lease having around eighty years remaining should take action to ensure that a lease extension is put in place without delay
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Callington can be a difficult process. We recommend you get guidance from a lawyer and surveyor 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 in-depth market knowledge 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.
In the wake of eight months of protracted discussions with the freeholder of her first floor apartment in Callington, Chloe commenced the lease extension process as the 80 year deadline was fast advancing. The transaction was finalised in March 2013. The freeholder’s fees were kept to an absolute minimum.
Ms Kayleigh Johnson completed a garden flat in Callington in July 1999. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparative flats in Callington with 100 year plus lease were valued around £233,200. The average ground rent payable was £60 invoiced yearly. The lease concluded in 2087. Considering the 61 years outstanding we calculated the premium to the landlord to extend the lease to be within £22,800 and £26,400 not including professional charges.
Ms Isabella Morgan purchased a garden flat in Callington in September 1998. We are asked if we could estimate the price could be for a 90 year lease extension. Identical residencies in Callington with 100 year plus lease were in the region of £171,800. The mid-range amount of ground rent was £55 billed per annum. The lease came to a finish on 4 June 2076. Considering the 50 years remaining we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of fees.