There is no doubt about it a leasehold property in Callington is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 100 years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Most flat owners in Callington will meet the qualifying criteria; nevertheless a conveyancer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Callington,the lease extension solicitors that we work with will always be prepared 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.
After unsuccessful negotiations with the freeholder of her one bedroom flat in Callington, Sophia commenced the lease extension process just as the lease was nearing the all-important eighty-year deadline. The lease extension was concluded in February 2006. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. S Parker was assigned a lease of a basement apartment in Callington in September 2011. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Comparable residencies in Callington with 100 year plus lease were in the region of £210,000. The average ground rent payable was £50 collected quarterly. The lease lapsed in 2106. Having 80 years unexpired we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
Last Winter we were approach by Ms H Michel , who was assigned a lease of a ground floor flat in Callington in April 2000. The dilemma was if we could estimate the price could be to extend the lease by an additional years. Comparable homes in Callington with a long lease were in the region of £280,000. The mid-range ground rent payable was £45 collected annually. The lease elapsed on 8 May 2095. Considering the 69 years as a residual term we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.