The re-sale value of a leasehold property in Chipping Norton depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be finalised ahead of the eighty year cut off point. Statute enables Chipping Norton 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 purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Chipping Norton with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Engaging our service gives you enhanced control over the value of your Chipping Norton leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Rory was the the leasehold proprietor of a studio flat in Chipping Norton being sold with a lease of a little over sixty years left. Rory on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Rory to invoke his statutory right. Rory procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Autumn we were approach by Mr and Mrs. U Stewart , who took over the lease of a studio apartment in Chipping Norton in October 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Similar properties in Chipping Norton with an extended lease were in the region of £254,200. The mid-range ground rent payable was £60 invoiced annually. The lease ran out in 2077. Given that there were 51 years remaining we approximated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 not including fees.
In 2012 we were e-mailed by Mr I Mason who, having owned a newly refurbished apartment in Chipping Norton in July 2010. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar homes in Chipping Norton with an extended lease were in the region of £210,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease expired on 19 June 2088. Given that there were 62 years left we approximated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 plus fees.