The market value of a leasehold property in Cambourne depends on how many years the lease has left to run. If it is near to or less than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. Ideally one should start the lease extension process when a lease still has 82 years remaining so that all matters can be finalised prior to the 80 year cut off point. Statute entitles Cambourne qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Cambourne with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Cambourne leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Finley was the the leasehold proprietor of a high value flat in Cambourne on the market with a lease of fraction over 59 years remaining. Finley on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Finley to exercise his statutory right. Finley procured expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
Last month we were e-mailed by Mr Tyler Garcia , who took over the lease of a purpose-built flat in Cambourne in March 2005. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar premises in Cambourne with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 collected annually. The lease concluded in 2094. Having 69 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Mrs M Fournier bought a one bedroom flat in Cambourne in March 2004. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Similar flats in Cambourne with a long lease were valued about £285,000. The mid-range amount of ground rent was £55 billed annually. The lease concluded in 2105. Given that there were 80 years outstanding we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.