The value of Calstock leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is less than 80 years
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Coventry Building Society | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Calstock leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago David, came seriously near to the 80-year mark with the lease on his basement apartment in Calstock. In buying his home two decades ago, the unexpired term was of no significance. As luck would have it, he became aware that he would soon be paying way over the odds for a lease extension. David extended the lease just in the nick of time in April. David and the freeholder via the managing agents eventually agreed on a premium of £5,000 . If the lease had gone lower than eighty years, the premium would have increased by a minimum £1,150.
Last year we were approach by Mr and Mrs. H Petit , who was assigned a lease of a garden apartment in Calstock in March 2012. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparable residencies in Calstock with a long lease were in the region of £265,000. The mid-range ground rent payable was £50 collected annually. The lease ran out in 2098. Given that there were 73 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
Mr V Walker purchased a ground floor flat in Calstock in February 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Calstock with a long lease were in the region of £264,000. The mid-range amount of ground rent was £60 collected per annum. The lease ran out on 15 September 2078. Given that there were 53 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 plus legals.