Camberley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Camberley residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Camberley you must check if your lease has between 70 and ninety years left. There are good reasons why a Camberley leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is actioned without delay
Leasehold properties in Camberley with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Camberley,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Camberley valuers.
In the wake of 6 months of protracted discussions with the freeholder of her ground floor apartment in Camberley, Millie commenced the lease extension process as the 80 year deadline was rapidly coming. The transaction was finalised in January 2009. The landlord’s fees were negotiated to less than 450 pounds.
Dr Yasmin Cooper owned a purpose-built flat in Camberley in August 2000. The question was if we could approximate the premium would likely be for a 90 year lease extension. Comparable homes in Camberley with an extended lease were in the region of £208,200. The average ground rent payable was £65 invoiced monthly. The lease ended in 2086. Given that there were 61 years left we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 not including legals.
In 2012 we were phoned by Mrs Phoebe Williams who, having moved into a ground floor apartment in Camberley in July 1996. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical premises in Camberley with an extended lease were worth £260,000. The average ground rent payable was £50 billed quarterly. The lease came to a finish on 18 July 2097. Given that there were 72 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.