Chances are that if you own a flat in Calverton you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Calverton can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Calverton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy correspondence with the freeholder of her first floor flat in Calverton, Katie commenced the lease extension process as the eighty year deadline was quickly coming. The lease extension was concluded in February 2007. The landlord’s fees were negotiated to under 650 pounds.
Mr and Mrs. D Martin was assigned a lease of a first floor flat in Calverton in November 2005. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparative homes in Calverton with a long lease were in the region of £205,000. The average amount of ground rent was £50 billed quarterly. The lease elapsed in 2105. Considering the 79 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.
In 2011 we were e-mailed by Ms Amelia Khan who, having was assigned a lease of a one bedroom flat in Calverton in May 2007. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparative flats in Calverton with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £65 collected per annum. The lease terminated in 2094. Having 68 years outstanding we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.