When it comes to long leasehold premises in Callington, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Residents in Callington with a lease approaching 81 years left should seriously think of extending it as soon as possible. Once a lease has less than eighty years remaining, under the current legislation the freeholder is entitled to calculate and levy a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Callington with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with procure 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.
In 2014 Leo, started to get close to the 80-year threshold with the lease on his garden flat in Callington. In buying his flat two decades ago, the lease term was of minimal concern. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Leo extended the lease at the eleventh hour in January. Leo and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If the lease had dipped lower than eighty years, the price would have escalated by a minimum £1,100.
Last year we were contacted by Mr V Smith , who owned a purpose-built flat in Callington in January 2010. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable flats in Callington with a long lease were valued around £265,200. The mid-range ground rent payable was £65 billed quarterly. The lease concluded on 5 June 2092. Considering the 66 years unexpired we approximated the premium to the landlord to extend the lease to be within £15,200 and £17,600 plus legals.
Dr D Reed bought a ground floor flat in Callington in November 2010. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparable homes in Callington with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 invoiced annually. The lease lapsed in 2081. Having 55 years outstanding we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including expenses.