It’s an underpublicised certainty that a Chippenham residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Chippenham property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be due. Most flat owners in Chippenham will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold properties in Chippenham with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| 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 Chippenham can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 dealing with Chippenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathan was the the leasehold owner of a 2 bedroom flat in Chippenham being marketed with a lease of fraction over sixty years left. Nathan informally approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Nathan to exercise his statutory right. Nathan procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Dr Alexander Lee was assigned a lease of a newly refurbished flat in Chippenham in February 2000. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Similar homes in Chippenham with 100 year plus lease were in the region of £237,600. The average amount of ground rent was £45 invoiced monthly. The lease lapsed on 2 June 2093. Having 67 years as a residual term we calculated the premium to the landlord for the lease extension to be within £11,400 and £13,200 not including costs.
In 2011 we were contacted by Mr Ethan Parker who, having took over the lease of a ground floor apartment in Chippenham in November 1998. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparative flats in Chippenham with an extended lease were worth £280,000. The average amount of ground rent was £55 invoiced quarterly. The lease ended on 5 May 2104. Having 78 years as a residual term we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.