Unfortunately that a Chipping Campden residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Chipping Campden property prices.Once your lease gets to 85ish years, you need to start considering 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 lower than eighty years - otherwise a higher amount will be due. The majority of flat owners in Chipping Campden will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally considered that a residential leasehold with in excess of 100 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 property will be equivalent in value to 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. |
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord in Chipping Campden,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chipping Campden valuers.
In the wake of 9 months of protracted discussions with the landlord of her studio flat in Chipping Campden, Erin started the lease extension process just as the lease was nearing the critical 80-year threshold. The transaction completed in November 2012. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were approached by Dr F Martin who, having acquired a newly refurbished flat in Chipping Campden in October 2000. The question was if we could estimate the price could be to extend the lease by 90 years. Identical residencies in Chipping Campden with a long lease were in the region of £275,000. The average ground rent payable was £55 billed every twelve months. The lease finished in 2102. Having 76 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
In 2010 we were contacted by Mrs U Norbert who, having took over the lease of a one bedroom apartment in Chipping Campden in January 2007. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Comparable premises in Chipping Campden with an extended lease were worth £176,200. The mid-range ground rent payable was £65 invoiced per annum. The lease ended on 13 January 2082. Having 56 years unexpired we estimated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 plus expenses.