The value of Chipping Campden leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease term is less than eighty years
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent 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 |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Chipping Campden can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in this area.
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 Chipping Campden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Andrew, started to get close to the 80-year mark with the lease on his one bedroom flat in Chipping Campden. In buying his home twenty years previously, the unexpired term was of minimal interest. Luckily, he realised he would soon be paying an escalated premium for Extending the lease. Andrew arranged for a lease extension just in the nick of time last May. Andrew and the freeholder in the end agreed on a premium of £5,500 . If the lease had dipped below 80 years, the premium would have increased by at least £950.
In 2012 we were approached by Mr and Mrs. O Alexander who, having bought a one bedroom apartment in Chipping Campden in October 2008. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparative properties in Chipping Campden with 100 year plus lease were valued about £191,000. The average amount of ground rent was £65 invoiced per annum. The lease expired on 18 August 2082. Considering the 58 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of expenses.
In 2010 we were called by Mr G Lefèvre who, having purchased a purpose-built flat in Chipping Campden in January 1996. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar premises in Chipping Campden with 100 year plus lease were valued about £250,000. The mid-range ground rent payable was £50 invoiced monthly. The lease expiry date was on 10 June 2093. Considering the 69 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.