Unfortunately that a Calverton residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Calverton property prices.Once your lease gets to 85ish years, you need to start thinking about 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 dips under 80 years - otherwise a higher premium will be payable. Most leasehold owners in Calverton will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service gives you better control over the value of your Calverton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Henry was the the leasehold owner of a 2 bedroom apartment in Calverton on the market with a lease of fraction over sixty years unexpired. Henry informally spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Henry to exercise his statutory right. Henry obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Last Winter we were e-mailed by Mr Liam Sharif , who completed a one bedroom apartment in Calverton in September 1998. The question was if we could approximate the premium could be for a ninety year lease extension. Similar residencies in Calverton with a long lease were in the region of £198,800. The mid-range amount of ground rent was £55 collected every twelve months. The lease ended in 2081. Having 55 years outstanding we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 not including professional charges.
Last Spring we were approach by Dr T François , who completed a one bedroom flat in Calverton in May 2011. We are asked if we could estimate the price could be to extend the lease by an additional years. Identical properties in Calverton with 100 year plus lease were worth £300,000. The average ground rent payable was £50 collected per annum. The lease terminated in 2101. Taking into account 75 years unexpired we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.