It’s an underpublicised truth that a Camberley residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Camberley property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Camberley will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| National Westminster Bank | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in Camberley,the lease extension lawyers that we work with will always be prepared 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.
Kai owned a studio flat in Camberley on the market with a lease of just over 72 years left. Kai informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Kai to exercise his statutory right. Kai procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Ms Danielle Lambert took over the lease of a one bedroom flat in Camberley in September 1999. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative flats in Camberley with 100 year plus lease were worth £235,200. The average ground rent payable was £45 billed quarterly. The lease elapsed in 2092. Considering the 66 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.
Last Autumn we were phoned by Mr N Evans , who purchased a purpose-built flat in Camberley in January 2005. The dilemma was if we could approximate the price would be to extend the lease by ninety years. Comparable premises in Camberley with an extended lease were valued about £275,000. The mid-range amount of ground rent was £55 billed quarterly. The lease terminated on 23 June 2103. Taking into account 77 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including expenses.