The closer a domestic lease in Cambourne nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Most flat owners in Cambourne will meet the qualifying criteria; however a conveyancing solicitor can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with undertake Cambourne 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 conveyancing solicitor we work with provide it.
Jasper owned a high value apartment in Cambourne being sold with a lease of a few days over 59 years remaining. Jasper informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jasper to invoke his statutory right. Jasper obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Dr Ollie Norbert completed a one bedroom apartment in Cambourne in October 1999. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable residencies in Cambourne with a long lease were worth £242,600. The mid-range amount of ground rent was £45 billed monthly. The lease lapsed in 2092. Taking into account 67 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus fees.
In 2009 we were approached by Dr Charlotte Bennett who, having bought a one bedroom apartment in Cambourne in February 2012. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical flats in Cambourne with 100 year plus lease were valued around £280,000. The average ground rent payable was £55 collected yearly. The lease terminated on 8 October 2103. Considering the 78 years remaining we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.