Why you should commence your 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 a leasehold property in Chipping Campden is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that formalities can be addressed ahead of the 80 year mark. Leasehold Reform legislation entitles Chipping Campden qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

Chipping Campden property with a lease extension is almost the same value as a freehold

Leasehold properties in Chipping Campden with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Lending institutions may decide not to lend with a short lease

The trend since 2008 has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the home loan is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. Historically mortgage companies would lend on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Chipping Campden lease extensions?

Lease extensions in Chipping Campden can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in lease extensions.

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.

Chipping Campden Lease Extension Example Cases:

Stanley, Chipping Campden, Gloucestershire,

Stanley was the the leasehold proprietor of a studio apartment in Chipping Campden being sold with a lease of a little over 61 years outstanding. Stanley informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Stanley to invoke his statutory right. Stanley obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.

Chipping Campden case:

Dr Gabriel Roux completed a recently refurbished flat in Chipping Campden in February 2004. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparable properties in Chipping Campden with a long lease were worth £168,800. The average ground rent payable was £60 invoiced yearly. The lease lapsed in 2081. Given that there were 55 years outstanding we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.

Chipping Campden case:

Mr and Mrs. A Gómez purchased a ground floor apartment in Chipping Campden in January 2010. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar residencies in Chipping Campden with 100 year plus lease were valued around £235,200. The average amount of ground rent was £45 invoiced monthly. The lease ended on 5 January 2092. Taking into account 66 years remaining we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.