The closer a residential lease in Cambridge nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, beyond one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. Many flat owners in Cambridge will meet the qualifying criteria; that being said a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 handle Cambridge 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 lawyer we work with provide it.
Jacob was the the leasehold proprietor of a conversion flat in Cambridge being marketed with a lease of a little over 59 years left. Jacob informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Jacob to invoke his statutory right. Jacob procured expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the property.
Last Christmas we were contacted by Mr Blake Bailey , who moved into a ground floor apartment in Cambridge in April 2007. The question was if we could approximate the price would be to extend the lease by a further 90 years. Comparable properties in Cambridge with a long lease were in the region of £254,200. The average ground rent payable was £60 collected quarterly. The lease elapsed on 26 July 2077. Taking into account 51 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 not including legals.
Dr Lily Lee owned a one bedroom flat in Cambridge in May 1999. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative properties in Cambridge with a long lease were worth £210,600. The mid-range amount of ground rent was £45 collected per annum. The lease lapsed in 2088. Given that there were 62 years left we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of legals.