Top reasons for Chipping Campden lease extension

Top reasons for lease extension now:

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

The market value of Chipping Campden leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the remaining term is below than eighty years

An extended lease is almost the same value as a freehold

Leasehold premises in Chipping Campden with more than one hundred years outstanding on the lease are often referred to as ‘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 reversionary interest unless savings on ground rent and estate charges justify it.

Lenders may decide not to finance a property with a short lease

The definition of a short lease varies by mortgage company, yet banks and building societies start to get jittery at around 75 years. This may cause difficulties when you wish to sell or remortgage your flat as it will be effectively unmortgageable. You may have no immediate plan to sell but when you do your buyer will need to wait a couple of years before they can exercise the right to a a lease extension.

Why use us for your lease extension in Chipping Campden?

Retaining our service gives you better control over the value of your Chipping Campden leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Chipping Campden Lease Extension Example Cases:

Ryan, Chipping Campden, Gloucestershire

Last year Ryan, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Chipping Campden. In buying his flat 19 years previously, the unexpired term was of no importance. As luck would have it, he became aware that he would imminently be paying way over the odds for a lease extension. Ryan extended the lease just in the nick of time last May. Ryan and the freeholder via the managing agents ultimately agreed on a premium of £5,000 . If the lease had slipped below eighty years, the premium would have escalated by at least £850.

Chipping Campden case:

Last Autumn we were called by Dr V Gunderson , who took over the lease of a garden apartment in Chipping Campden in July 2004. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Chipping Campden with a long lease were worth £254,200. The average amount of ground rent was £60 invoiced monthly. The lease ended on 25 September 2077. Considering the 51 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of legals.

Chipping Campden case:

Mr and Mrs. J Smith was assigned a lease of a basement flat in Chipping Campden in October 2005. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable flats in Chipping Campden with an extended lease were in the region of £210,600. The average amount of ground rent was £45 collected every twelve months. The lease came to a finish on 1 August 2088. Taking into account 62 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of expenses.