Calne leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease falls lower than eighty years - otherwise a higher premium will be payable. Flat owners in Calne will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancers 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.
Off the back of protracted discussions with the landlord of her purpose-built apartment in Calne, Millie commenced the lease extension process just as her lease was coming close to the critical 80-year threshold. The legal work was concluded in June 2007. The landlord’s charges were negotiated to about 500 GBP.
In 2014 we were approached by Dr Niamh Bernard who, having owned a basement flat in Calne in March 2010. The question was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Identical properties in Calne with 100 year plus lease were worth £218,400. The average ground rent payable was £60 collected quarterly. The lease expired on 23 March 2085. Given that there were 59 years left we estimated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 plus professional charges.
Last Autumn we were called by Mr and Mrs. Y Jones , who acquired a first floor flat in Calne in November 2000. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Identical properties in Calne with an extended lease were valued about £205,000. The mid-range ground rent payable was £50 collected annually. The lease concluded on 19 February 2105. Having 79 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.