The closer a residential lease in Callington nears to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner as opposed to later. Many flat owners in Callington will qualify for this right; however a conveyancing solicitor can advise if you qualify to extend your lease. 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 conventional wisdom that a property with over 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 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
The conveyancers that we work with handle Callington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Felix was the the leasehold proprietor of a 2 bedroom apartment in Callington on the market with a lease of just over 72 years remaining. Felix informally approached his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Felix to invoke his statutory right. Felix obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2009 we were phoned by Mr and Mrs. K Martin who, having purchased a newly refurbished apartment in Callington in August 2009. The question was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Similar flats in Callington with 100 year plus lease were in the region of £191,400. The mid-range amount of ground rent was £55 billed annually. The lease finished on 7 January 2080. Given that there were 54 years outstanding we estimated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 not including fees.
Mr and Mrs. T Bernard owned a studio apartment in Callington in January 2012. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Similar homes in Callington with an extended lease were worth £295,000. The average ground rent payable was £45 invoiced monthly. The lease terminated on 3 March 2100. Having 74 years outstanding we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.