It’s a harsh certainty that a Chippenham residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Chippenham property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining falls below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Chippenham will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Chippenham with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Lease extensions in Chippenham can be a difficult process. We recommend you secure guidance from a lawyer and surveyor 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 a wealth of experience procuring Chippenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted discussions with the landlord of her studio flat in Chippenham, Ellie initiated the lease extension process just as the lease was nearing the critical 80-year mark. The transaction completed in May 2013. The landlord’s costs were kept to an absolute minimum.
Last year we were called by Dr W Bonnet , who bought a ground floor flat in Chippenham in June 2011. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Chippenham with 100 year plus lease were in the region of £210,600. The mid-range amount of ground rent was £45 billed monthly. The lease concluded on 14 February 2088. Taking into account 62 years remaining we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.
In 2010 we were approached by Dr Ella Martinez who, having moved into a recently refurbished flat in Chippenham in May 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Similar flats in Chippenham with a long lease were in the region of £260,000. The average ground rent payable was £50 invoiced quarterly. The lease elapsed on 11 January 2098. Given that there were 72 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.