When it comes to long leasehold property in Chipping Campden, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Leasehold owners in Chipping Campden with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. When a lease has fewer than eighty years outstanding, under the current statute the freeholder is entitled to calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Chipping Campden with in excess of one hundred years remaining 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 purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Chipping Campden 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 lawyer we work with provide it.
Oscar was the the leasehold owner of a studio apartment in Chipping Campden on the market with a lease of fraction over 72 years left. Oscar on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Oscar to exercise his statutory right. Oscar procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Mr Y Richardson completed a studio apartment in Chipping Campden in September 1997. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar homes in Chipping Campden with 100 year plus lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced per annum. The lease ran out in 2076. Taking into account 51 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of fees.
In 2011 we were phoned by Mrs Caitlin Davies who, having bought a newly refurbished flat in Chipping Campden in September 2007. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical premises in Chipping Campden with 100 year plus lease were worth £210,600. The average amount of ground rent was £45 collected every twelve months. The lease terminated in 2087. Given that there were 62 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of costs.