On the balance of probabilities where you own a flat in Chipping Campden you actually own a long leasehold interest over your property
Leasehold premises in Chipping Campden with more than one hundred years unexpired 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Chipping Campden leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ethan owned a studio flat in Chipping Campden being sold with a lease of fraction over fifty eight years unexpired. Ethan on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ethan to invoke his statutory right. Ethan procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Mr R Martin purchased a ground floor flat in Chipping Campden in March 1998. 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 a further 90 years. Similar homes in Chipping Campden with a long lease were valued around £275,000. The average amount of ground rent was £55 collected per annum. The lease lapsed in 2102. Given that there were 77 years left we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.
Last year we were contacted by Ms Katherine López , who took over the lease of a ground floor apartment in Chipping Campden in February 1996. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative homes in Chipping Campden with a long lease were in the region of £183,600. The average amount of ground rent was £65 billed annually. The lease came to a finish on 7 April 2082. Given that there were 57 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.