Chipping Campden Lease Extension - Free Consultation

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Top reasons for Chipping Campden lease extension


Main reasons to commence your Chipping Campden lease extension today:

A Chipping Campden leasehold property depreciates with the years remaining on the lease.

There is no doubt about it a leasehold flat or house in Chipping Campden is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 100 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease sooner rather than later. Many flat owners in Chipping Campden will meet the qualifying criteria; that being said a lawyer can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.

Chipping Campden property with a lease extension is almost the same value as a freehold

It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.

Lending institutions may not lend with a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to get jittery at around 75 years. This will cause difficulties as and when you need to market or refinance your flat as it will be practically unmortgageable. Even though you might not have an imminent plan to sell but when you do your purchaser must wait two years before being able to exercise the right to a an extension to the lease.

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.
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.
Leeds Building Society 85 years remaining from the start of the mortgage.
Santander You must report the unexpired lease term to us and await our instructions if:
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis

We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.

Why use us for your lease extension in Chipping Campden?

Retaining our service will provide you increased control over the value of your Chipping Campden leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Chipping Campden Lease Extension Case Studies:

Freddie, Chipping Campden, Gloucestershire,

Freddie was the the leasehold owner of a high value apartment in Chipping Campden on the market with a lease of a little over 59 years remaining. Freddie informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Freddie to exercise his statutory right. Freddie obtained expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.

Chipping Campden case:

In 2009 we were e-mailed by Mr and Mrs. B Evans who, having completed a studio apartment in Chipping Campden in June 1999. The question was if we could estimate the price would be for a 90 year extension to my lease. Comparable properties in Chipping Campden with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease concluded in 2101. Taking into account 77 years unexpired we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.

Chipping Campden case:

Ms Kayleigh Khan took over the lease of a purpose-built apartment in Chipping Campden in January 1998. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Identical properties in Chipping Campden with 100 year plus lease were valued around £183,600. The mid-range ground rent payable was £65 billed monthly. The lease ran out in 2081. Given that there were 57 years outstanding we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus professional charges.