With a residential leasehold property in Calcot, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Anyone in Calcot with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once a lease has below eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your Calcot leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Milo owned a high value flat in Calcot on the market with a lease of a little over 61 years remaining. Milo informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Milo to invoke his statutory right. Milo obtained expert advice and secured satisfactory deal informally and sell the flat.
Last month we were called by Dr Liam Morris , who owned a studio apartment in Calcot in November 2002. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparable properties in Calcot with a long lease were in the region of £285,000. The average amount of ground rent was £45 invoiced per annum. The lease elapsed on 25 May 2095. Taking into account 71 years unexpired we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.
Mrs Alexandra Roberts took over the lease of a first floor flat in Calcot in May 2001. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar residencies in Calcot with an extended lease were in the region of £230,800. The average amount of ground rent was £60 collected monthly. The lease lapsed on 21 August 2084. Taking into account 60 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of professional charges.