With a domestic leasehold property in Campden Hill, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than 80 years left. Leasehold owners in Campden Hill with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has under 80 years outstanding, under the current Act the landlord is entitled to calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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. |
| 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. |
| 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. |
Engaging our service gives you better control over the value of your Campden Hill leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Jonathan, started to get close to the 80-year threshold with the lease on his purpose- built flat in Campden Hill. Having bought his home 18 years previously, the length of the lease was of no bearing. Fortunately, he realised he would imminently be paying way over the odds for a lease extension. Jonathan arranged for a lease extension just under the wire last August. Jonathan and the landlord who owned the flat above subsequently settled on a premium of £6,000 . If the lease had slipped lower than 80 years, the sum would have gone up by at least £975.
Mr and Mrs. J Collins completed a first floor flat in Campden Hill in April 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Similar properties in Campden Hill with an extended lease were in the region of £290,000. The average ground rent payable was £45 collected annually. The lease concluded in 2098. Given that there were 72 years left we estimated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of legals.
An example of a Lease Extension decision for a Campden Hill flat 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 related to 1 flat. The number of years remaining on the existing lease(s) was 37.79 years.