It’s an underpublicised truth that a Chipping Campden residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Chipping Campden property market.Once your lease gets to 85ish years, you should 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 slips under eighty years - otherwise a higher premium will be due. Most leasehold owners in Chipping Campden will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barclays plc | |
| Chelsea Building Society | |
| Coventry Building Society |
Lease extensions in Chipping Campden can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
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 Chipping Campden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Logan was the the leasehold owner of a 2 bedroom apartment in Chipping Campden being sold with a lease of just over 59 years remaining. Logan informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Logan to exercise his statutory right. Logan obtained expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2009 we were phoned by Mr G Nelson who, having owned a ground floor flat in Chipping Campden in May 2007. The question was if we could estimate the price would be for a 90 year lease extension. Comparative residencies in Chipping Campden with an extended lease were worth £193,400. The mid-range amount of ground rent was £65 billed annually. The lease termination date was in 2085. Taking into account 59 years remaining we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of expenses.
Dr Jack Wood took over the lease of a one bedroom apartment in Chipping Campden in January 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical residencies in Chipping Campden with 100 year plus lease were valued about £250,000. The average amount of ground rent was £50 collected annually. The lease elapsed in 2096. Given that there were 70 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.