When it comes to long leasehold property in Calstock, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Residents in Calstock with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When a lease has under eighty years left, under the current legislation the landlord can calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Calstock with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Calstock 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 conveyancer we work with provide it.
Half a year ago William, came precariously near to the eighty-year threshold with the lease on his garden apartment in Calstock. Having bought his flat twenty years ago, the lease term was of no bearing. Fortunately, he noticed he needed to take action soon on a lease extension. William was able to extend his lease just in the nick of time last July. William and the landlord who owned the flat above ultimately settled on sum of £5,000 . If he not met the deadline, the amount would have escalated by a minimum £900.
Dr S Vincent moved into a garden apartment in Calstock in August 2002. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparative residencies in Calstock with an extended lease were valued about £166,400. The average ground rent payable was £60 invoiced monthly. The lease expired on 1 November 2079. Given that there were 54 years outstanding we calculated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of fees.
Dr M Young owned a recently refurbished flat in Calstock in February 2007. The dilemma was if we could approximate the price could be to extend the lease by 90 years. Comparative premises in Calstock with an extended lease were valued around £227,800. The mid-range amount of ground rent was £45 billed monthly. The lease expired on 6 February 2090. Taking into account 65 years outstanding we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.