With a domestic leasehold property in Cambourne, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are less than 80 years remaining. Anyone in Cambourne with a lease nearing 81 years remaining should seriously think of extending it without delay. When a lease has fewer than eighty years left, under the current statute the freeholder can calculate and demand a greater premium, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Skipton Building Society | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with handle Cambourne 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 conveyancing solicitor we work with provide it.
Finley was the the leasehold proprietor of a conversion apartment in Cambourne on the market with a lease of just over 72 years unexpired. Finley informally spoke with his landlord being a well known London-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 £50 annually. No ground rent would be payable on a lease extension were Finley to exercise his statutory right. Finley procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mrs Catherine Morel purchased a recently refurbished apartment in Cambourne in February 1997. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Comparative premises in Cambourne with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £55 billed yearly. The lease concluded on 23 June 2105. Given that there were 79 years remaining we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.
Last Autumn we were phoned by Mr N Brown , who owned a purpose-built flat in Cambourne in September 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Cambourne with 100 year plus lease were valued about £193,400. The mid-range amount of ground rent was £65 invoiced monthly. The lease lapsed on 22 January 2085. Considering the 59 years remaining we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including expenses.