The only way is down when it comes to Cambridge lease terms. Cambridge leaseholds that have a residual term fewer than 80 years will de-escalate in value at a rapid rate, and the cost of extending your lease will rise.
Leasehold properties in Cambridge with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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. |
| 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 |
Lease extensions in Cambridge can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Cambridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted correspondence with the landlord of her purpose-built apartment in Cambridge, Morgan commenced the lease extension process as the 80 year mark was quickly nearing. The transaction was concluded in July 2007. The landlord’s costs were kept to an absolute minimum.
In 2010 we were phoned by Dr V Gómez who, having moved into a newly refurbished apartment in Cambridge in May 2007. The question was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar homes in Cambridge with 100 year plus lease were valued around £176,200. The mid-range amount of ground rent was £65 invoiced monthly. The lease came to a finish on 18 January 2081. Considering the 56 years outstanding we estimated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus professional charges.
Mrs Emma Rogers moved into a one bedroom flat in Cambridge in April 2011. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical residencies in Cambridge with a long lease were worth £237,600. The average amount of ground rent was £45 collected yearly. The lease ran out on 6 June 2092. Having 67 years remaining we calculated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 not including costs.