The only way is down when it comes to Callington lease terms. Callington flats that have a remaining term less than than 80 years will drop in value at a rapid rate, and the cost of extending your lease will rise.
Leasehold properties in Callington with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Godiva Mortgages | 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Callington,the lease extension experts that we work with will always be happy 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.
Subsequent to unsuccessful negotiations with the landlord of her studio flat in Callington, Alisha commenced the lease extension process just as the lease was nearing the critical 80-year mark. The legal work was finalised in September 2013. The landlord’s costs were kept to an absolute minimum.
Mrs Rebecca Reed purchased a one bedroom flat in Callington in September 2012. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Identical flats in Callington with an extended lease were worth £285,000. The mid-range ground rent payable was £45 collected monthly. The lease end date was in 2096. Given that there were 72 years outstanding we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
Mrs W Jones completed a first floor apartment in Callington in February 2005. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar properties in Callington with 100 year plus lease were valued about £233,200. The mid-range ground rent payable was £60 billed every twelve months. The lease elapsed in 2085. Given that there were 61 years remaining we calculated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 exclusive of legals.