There is no doubt about it a leasehold property in Campden Hill is a wasting asset as a result of the shortening lease. If the lease has, over 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Campden Hill will qualify for this right; nevertheless a lawyer will be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Campden Hill with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Campden Hill,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Campden Hill valuers.
In the wake of 6 months of unsuccessful negotiations with the landlord of her ground floor flat in Campden Hill, Jessica commenced the lease extension process just as the lease was approaching the crucial eighty-year deadline. The lease extension was concluded in August 2007. The landlord’s fees were kept to an absolute minimum.
Last month we were e-mailed by Mr and Mrs. J López , who took over the lease of a one bedroom flat in Campden Hill in November 2002. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable properties in Campden Hill with 100 year plus lease were valued around £290,000. The mid-range ground rent payable was £45 invoiced monthly. The lease termination date was in 2099. Having 73 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Campden Hill premises is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case affected 1 flat. The unexpired term as at the valuation date was 37.79 years.