The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Calne may extend the lease for a further 90 years in accordance with legislation. Do think carefully before delaying your Calne lease extension. Shelving that expense today simply increases the amount you will eventually be required to pay to extend the lease.
Leasehold premises in Calne with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Calne 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 conveyancing solicitor we work with provide it.
Eliot owned a conversion apartment in Calne on the market with a lease of just over fifty eight years outstanding. Eliot informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Eliot to invoke his statutory right. Eliot procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
In 2014 we were phoned by Dr Max Moore who, having purchased a ground floor flat in Calne in June 2012. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar residencies in Calne with a long lease were in the region of £233,200. The average amount of ground rent was £60 billed monthly. The lease terminated on 6 October 2086. Taking into account 61 years unexpired we approximated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 not including professional charges.
In 2010 we were contacted by Dr Stanley López who, having completed a one bedroom flat in Calne in August 2010. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar homes in Calne with a long lease were in the region of £166,800. The mid-range ground rent payable was £50 billed per annum. The lease lapsed in 2075. Taking into account 50 years remaining we estimated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus expenses.