Chipping Campden leases on residential properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Chipping Campden will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain situations you may not qualify. There are prescribed deadlines and formalities to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Chipping Campden lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last year Rory, started to get near to the 80-year threshold with the lease on his basement flat in Chipping Campden. Having bought his home two decades ago, the unexpired term was of no bearing. Thankfully, he noticed he would imminently be paying an escalated premium for Extending the lease. Rory extended the lease just ahead of time in August. Rory and the freeholder via the management company eventually settled on the final figure of £6,000 . If he failed to meet the deadline, the premium would have increased by at least £1,125.
Mr and Mrs. F Thompson moved into a purpose-built apartment in Chipping Campden in July 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in Chipping Campden with 100 year plus lease were worth £227,800. The average ground rent payable was £45 collected annually. The lease concluded in 2089. Given that there were 65 years left we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus legals.
Last year we were called by Mrs Kelsey Morris , who moved into a newly refurbished flat in Chipping Campden in January 2000. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative homes in Chipping Campden with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected quarterly. The lease end date was in 2100. Considering the 76 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.