Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Chipping Campden. Clearly, the length of lease left shortens as time goes by. This may pass by relatively unnoticed when the residence needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Chipping Campden have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. Please give due attention before putting off your Chipping Campden lease extension. Putting off that expense now only increases the price you will eventually incur to extend your lease
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Chipping Campden can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in lease extensions.
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 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.
Tommy was the the leasehold proprietor of a 2 bedroom apartment in Chipping Campden on the market with a lease of a little over sixty years remaining. Tommy informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last month we were called by Mrs Y Khan , who took over the lease of a one bedroom flat in Chipping Campden in March 2011. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Chipping Campden with 100 year plus lease were valued around £200,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease came to a finish in 2086. Having 60 years remaining we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of costs.
Dr K Thomas purchased a ground floor flat in Chipping Campden in October 2004. We are asked if we could estimate the price could be to extend the lease by 90 years. Similar residencies in Chipping Campden with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease concluded in 2097. Taking into account 71 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.