There is no doubt about it a leasehold flat or house in Callington is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 100 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less 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 main reason why you should consider extending without delay. Most flat owners in Callington will meet the qualifying criteria; however a conveyancing solicitor can advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Callington with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
Regardless of whether you are a tenant or a landlord in Callington,the lease extension experts that we work with will always be willing 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.
Isaac was the the leasehold proprietor of a high value flat in Callington on the market with a lease of a few days over fifty eight years remaining. Isaac on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Isaac to invoke his statutory right. Isaac procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Summer we were called by Dr I Lambert , who moved into a one bedroom apartment in Callington in April 2010. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative residencies in Callington with 100 year plus lease were valued around £191,400. The average amount of ground rent was £55 invoiced quarterly. The lease came to a finish in 2079. Taking into account 54 years unexpired we calculated the premium to the landlord to extend the lease to be within £34,200 and £39,600 not including fees.
In 2013 we were approached by Dr Eli Garcia who, having bought a purpose-built flat in Callington in February 2009. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in Callington with 100 year plus lease were valued around £295,000. The average ground rent payable was £45 collected yearly. The lease expired on 3 March 2099. Having 74 years left we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.