It’s an underpublicised truth that a Chipping Campden residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Chipping Campden property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Chipping Campden will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in Chipping Campden with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Chipping Campden,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chipping Campden valuers.
Off the back of lengthy correspondence with the landlord of her ground floor flat in Chipping Campden, Amelia started the lease extension process as the eighty year threshold was swiftly nearing. The transaction was concluded in August 2007. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were e-mailed by Mrs Amy Lefebvre who, having took over the lease of a recently refurbished flat in Chipping Campden in June 2004. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar homes in Chipping Campden with 100 year plus lease were valued around £176,200. The mid-range amount of ground rent was £65 billed quarterly. The lease finished on 12 February 2082. Given that there were 56 years unexpired we estimated the premium to the landlord to extend the lease to be between £29,500 and £34,000 plus professional charges.
Last year we were contacted by Dr K Martínez , who acquired a studio apartment in Chipping Campden in November 1998. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Similar premises in Chipping Campden with 100 year plus lease were in the region of £237,600. The mid-range amount of ground rent was £45 invoiced quarterly. The lease ended in 2093. Considering the 67 years left we calculated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 not including legals.