For anyone whose Calcot property is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension.
Leasehold properties in Calcot with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Calcot 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.
Ben owned a high value apartment in Calcot on the market with a lease of just over fifty eight years outstanding. Ben informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ben to exercise his statutory right. Ben obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last Winter we were approach by Mr and Mrs. U Ramírez , who completed a purpose-built flat in Calcot in September 2010. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Identical premises in Calcot with an extended lease were in the region of £250,400. The mid-range ground rent payable was £65 billed annually. The lease lapsed on 4 January 2089. Considering the 64 years left we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of professional charges.
In 2014 we were e-mailed by Dr G Phillips who, having moved into a one bedroom flat in Calcot in September 1997. The question was if we could approximate the price could be to extend the lease by a further 90 years. Comparable homes in Calcot with a long lease were valued about £189,000. The average amount of ground rent was £55 billed every twelve months. The lease finished on 2 July 2078. Having 53 years unexpired we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus legals.