As the the remaining lease term of a Calne residential lease decreases so does its value and therefore the value of your property. If the lease has, over 99 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer 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 primary logic behind why you should extend the lease sooner rather than later. Most flat owners in Calne will qualify for this right; nevertheless a lawyer should be able to confirm whether you are eligible for a lease extension. In certain 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 Calne with in excess of 100 years unexpired on the lease are sometimes 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 to be gained by purchasing the freehold unless savings on ground rent and service 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. |
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Yorkshire 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. |
Lease extensions in Calne can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in lease extensions.
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 procuring Calne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Callum, came precariously near to the 80-year mark with the lease on his first floor apartment in Calne. In buying his property 18 years ago, the length of the lease was of little interest. by good luck, he noticed he would imminently be paying way over the odds for a lease extension. Callum was able to extend his lease just in the nick of time in May. Callum and the landlord eventually settled on an amount of £6,000 . If the lease had fallen below eighty years, the premium would have gone up by a minimum £1,000.
Dr Max Ramírez owned a garden flat in Calne in April 1995. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical homes in Calne with an extended lease were valued around £260,200. The mid-range ground rent payable was £65 invoiced monthly. The lease ended on 13 November 2092. Given that there were 66 years left we estimated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of fees.
Mr E Evans owned a garden flat in Calne in September 2004. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar homes in Calne with 100 year plus lease were valued about £198,800. The mid-range amount of ground rent was £55 invoiced annually. The lease lapsed on 10 March 2081. Taking into account 55 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including expenses.