Unfortunately that a Calstock residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Calstock property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be due. The majority of flat owners in Calstock will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Calstock with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Calstock leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Thomas, came seriously near to the 80-year mark with the lease on his garden apartment in Calstock. In buying his property two decades ago, the unexpired term was of no concern. Fortunately, it dawned on him that he would soon be paying way over the odds for Extending the lease. Thomas was able to extend his lease just in the nick of time last March. Thomas and the freeholder in the end agreed on a premium of £6,000 . If he failed to meet the deadline, the premium would have become more costly by a minimum £1,125.
Last month we were approach by Mrs Lucy Davies , who bought a studio apartment in Calstock in February 1997. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Similar flats in Calstock with a long lease were worth £255,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease lapsed in 2096. Taking into account 70 years unexpired we approximated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 plus fees.
Dr O Flores moved into a purpose-built flat in Calstock in June 2008. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Comparative residencies in Calstock with 100 year plus lease were valued around £246,800. The mid-range ground rent payable was £60 collected every twelve months. The lease ran out on 11 August 2076. Having 50 years remaining we estimated the premium to the landlord for the lease extension to be between £44,700 and £51,600 not including expenses.