The market value of Chipping Campden leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the unexpired lease term is less than eighty years
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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. |
The conveyancers that we work with procure 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 Spring Alex, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Chipping Campden. Having purchased his home two decades ago, the unexpired term was of no importance. Thankfully, he became aware that he needed to take action soon on a lease extension. Alex arranged for a lease extension at the eleventh hour in September. Alex and the freeholder via the management company in the end agreed on a premium of £5,500 . If he had missed the deadline, the amount would have gone up by at least £1,025.
Mr L Rivera purchased a garden flat in Chipping Campden in June 1997. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Identical residencies in Chipping Campden with a long lease were worth £285,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease ran out on 16 July 2104. Having 79 years outstanding we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus costs.
Mr and Mrs. Y Williams moved into a one bedroom flat in Chipping Campden in May 2009. The question was if we could estimate the price would be for a ninety year lease extension. Similar flats in Chipping Campden with an extended lease were in the region of £193,400. The average amount of ground rent was £65 collected per annum. The lease termination date was on 4 June 2084. Having 59 years unexpired we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 plus legals.