When it comes to domestic leasehold premises in Chipping Campden, you are actually buying a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Anyone in Chipping Campden with a lease approaching 81 years left should seriously consider extending it sooner rather than later. When the lease term has less than eighty years left, under the current Act the freeholder can calculate and demand a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Chipping Campden with more than 100 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 secure professional help from a conveyancing solicitor and surveyor with experience in this area.
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 in-depth market knowledge procuring 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.
Tyler was the the leasehold owner of a conversion flat in Chipping Campden being sold with a lease of a few days over 72 years remaining. Tyler on an informal basis approached his freeholder a well known local-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 on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Tyler to invoke his statutory right. Tyler obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Last month we were phoned by Mr and Mrs. D Howard , who owned a one bedroom apartment in Chipping Campden in February 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable flats in Chipping Campden with 100 year plus lease were valued about £264,000. The average ground rent payable was £60 invoiced monthly. The lease ran out on 18 May 2078. Having 53 years unexpired we estimated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 plus expenses.
In 2010 we were approached by Dr C Collins who, having moved into a first floor apartment in Chipping Campden in February 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Chipping Campden with 100 year plus lease were worth £220,400. The mid-range ground rent payable was £45 collected per annum. The lease expired in 2089. Having 64 years left we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 plus professional charges.