The re-sale value of a leasehold property in Chipping Campden is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. Ideally one should start the lease extension process when a lease still has 82 years to run so that all matters can be addressed prior to the 80 year threshold. Current legislation enables Chipping Campden qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Leeds Building Society |
Retaining our service will provide you better control over the value of your Chipping Campden leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago James, started to get near to the eighty-year mark with the lease on his purpose- built flat in Chipping Campden. In buying his home two decades ago, the unexpired term was of minimal relevance. As luck would have it, he noticed he needed to take steps soon on Extending the lease. James extended the lease just under the wire in April. James and the freeholder via the managing agents subsequently agreed on a premium of £5,000 . If he had missed the deadline, the price would have gone up by a minimum £1,100.
Mrs L King owned a ground floor flat in Chipping Campden in January 1998. The question was if we could approximate the premium would likely be to extend the lease by ninety years. Similar flats in Chipping Campden with an extended lease were worth £265,000. The mid-range amount of ground rent was £50 billed per annum. The lease lapsed in 2100. Having 74 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
In 2011 we were approached by Ms B García who, having purchased a first floor apartment in Chipping Campden in August 2012. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparative homes in Chipping Campden with 100 year plus lease were worth £166,400. The mid-range amount of ground rent was £60 collected yearly. The lease ran out in 2080. Having 54 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 not including professional charges.