Capital in north having atmosphere and charm (7)
I believe the answer is:
nairobi
'capital' is the definition.
(Nairobi is an example)
'north having atmosphere and charm' is the wordplay.
'north' becomes 'n' ('N' can be a synonym of 'north').
'having' says to put letters next to each other.
'atmosphere' becomes 'air' ('air' can be a synonym of 'atmosphere').
'and' means one lot of letters go next to another.
'charm' becomes 'obi' (I've seen this before).
'n'+'air'+'obi'='NAIROBI'
'in' is the link.
(Other definitions for nairobi that I've seen before include "The capital of Kenya (7)" , "I, a robin (anag) - city" , "Kenyan capital" , "Kenyan city" , "City of Kenya" .)