The only way is down when it comes to Cambridge lease terms. Cambridge properties that have a residual term lower than 80 years will de-escalate in value at a rapid rate, and the cost of extending your lease will increase.
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Cambridge,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cambridge valuers.
Muhammad owned a 2 bedroom apartment in Cambridge on the market with a lease of fraction over 61 years unexpired. Muhammad informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be due on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Mr Luca Carter purchased a one bedroom flat in Cambridge in May 2008. The question was if we could approximate the price would be to extend the lease by ninety years. Comparable properties in Cambridge with an extended lease were valued about £255,000. The mid-range ground rent payable was £50 invoiced yearly. The lease expired in 2096. Considering the 71 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
Dr Ryan Mason acquired a first floor flat in Cambridge in September 2008. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparative residencies in Cambridge with a long lease were worth £254,200. The mid-range amount of ground rent was £60 collected every twelve months. The lease ended in 2076. Having 51 years as a residual term we calculated the premium to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of costs.