The value of Chipping Campden leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is below than 80 years
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Chipping Campden can be a difficult process. We recommend you secure professional help from a lawyer 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 a wealth of experience 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.
Off the back of protracted discussions with the freeholder of her purpose-built apartment in Chipping Campden, Maisie initiated the lease extension process as the 80 year mark was fast coming. The lease extension completed in February 2006. The landlord’s costs were negotiated to about 600 GBP.
Last year we were e-mailed by Mrs N Bertrand , who purchased a one bedroom apartment in Chipping Campden in June 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical flats in Chipping Campden with an extended lease were worth £203,200. The mid-range amount of ground rent was £65 collected yearly. The lease elapsed on 26 March 2086. Taking into account 61 years remaining we estimated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 not including legals.
In 2009 we were called by Mrs Abbie Jackson who, having moved into a purpose-built apartment in Chipping Campden in February 2010. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar properties in Chipping Campden with 100 year plus lease were worth £260,000. The average amount of ground rent was £50 billed per annum. The lease terminated in 2097. Considering the 72 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.