When it comes to residential leasehold premises in Cambourne, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are fewer than eighty years left. Anyone in Cambourne with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has fewer than eighty years remaining, under the current Act the freeholder is entitled to calculate and demand a greater amount, based on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Cambourne can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Cambourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Ethan, came perilously near to the eighty-year threshold with the lease on his garden flat in Cambourne. Having purchased his flat 19 years ago, the lease term was of minimal relevance. by good luck, he realised he would imminently be paying an escalated premium for Extending the lease. Ethan arranged for a lease extension just under the wire last September. Ethan and the landlord eventually agreed on the final figure of £5,000 . If the lease had slid lower than 80 years, the amount would have become more exhorbitant by at least £925.
In 2011 we were contacted by Dr E Johnson who, having moved into a garden apartment in Cambourne in November 2002. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable premises in Cambourne with a long lease were in the region of £260,000. The mid-range amount of ground rent was £50 collected annually. The lease finished in 2098. Having 72 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
In 2010 we were contacted by Mr and Mrs. R Carter who, having completed a garden apartment in Cambourne in January 2003. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative homes in Cambourne with an extended lease were worth £256,600. The average ground rent payable was £60 invoiced per annum. The lease concluded on 25 January 2078. Having 52 years unexpired we estimated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of professional charges.