As the length of the unexpired term of a Chippenham residential lease decreases so does its value and therefore the value of your property. Where the residual term has, in excess of one hundred years to run then this decrease may be negligible however there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease sooner rather than later. Most flat owners in Chippenham will qualify for this right; however a lawyer will be able to advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Chippenham with more than 100 years left on the lease are often regarded as a ‘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 freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Chippenham,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chippenham valuers.
During the course of the last few months Charlie, started to get close to the 80-year threshold with the lease on his ground floor apartment in Chippenham. Having purchased his flat two decades ago, the unexpired term was of minimal importance. by good luck, he realised he needed to take action soon on Extending the lease. Charlie extended the lease at the eleventh hour last April. Charlie and the freeholder eventually settled on the final figure of £6,000 . If the lease had slid to less than eighty years, the sum would have increased by at least £950.
Last Christmas we were contacted by Dr Matthew Brown , who bought a recently refurbished apartment in Chippenham in September 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Comparable premises in Chippenham with an extended lease were worth £225,400. The mid-range amount of ground rent was £45 collected yearly. The lease concluded on 17 April 2090. Having 64 years remaining we calculated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 plus costs.
In 2013 we were e-mailed by Mrs B Miller who, having bought a newly refurbished flat in Chippenham in March 2002. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Comparative flats in Chippenham with 100 year plus lease were valued around £270,000. The mid-range ground rent payable was £55 invoiced monthly. The lease finished on 12 March 2101. Given that there were 75 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.