The value of Callington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is less than 80 years
It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| 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; |
| Chelsea 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. |
| 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. |
| 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. |
Lease extensions in Callington can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer 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.
Two years ago Seth, came seriously near to the 80-year mark with the lease on his purpose- built apartment in Callington. In buying his flat 18 years ago, the lease term was of minimal importance. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Seth was able to extend his lease at the eleventh hour last May. Seth and the landlord who owned the flat above ultimately agreed on a premium of £6,000 . If he had missed the deadline, the figure would have gone up by at least £925.
Last year we were called by Mr and Mrs. V Ramírez , who owned a basement flat in Callington in March 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparative homes in Callington with 100 year plus lease were worth £208,600. The mid-range ground rent payable was £60 billed every twelve months. The lease lapsed in 2083. Considering the 57 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 plus fees.
In 2009 we were e-mailed by Mr and Mrs. V Simon who, having took over the lease of a basement flat in Callington in May 2011. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative residencies in Callington with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease finished on 7 July 2103. Taking into account 77 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.