With a residential leasehold premises in Cambourne, you are actually purchasing a right to reside in a property for a set period of time. Modern 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 consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Residents in Cambourne with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once a lease has below eighty years left, under the current Act the landlord is entitled to calculate and levy a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Cambourne,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cambourne valuers.
Eliot owned a studio apartment in Cambourne being marketed with a lease of a few days over 61 years outstanding. Eliot on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Eliot to exercise his statutory right. Eliot obtained expert advice and secured an acceptable deal without going to tribunal and sell the flat.
Dr Hunter Sharif purchased a newly refurbished apartment in Cambourne in February 2002. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Cambourne with 100 year plus lease were valued around £245,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease expired in 2094. Having 68 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
Ms Anna Sánchez moved into a basement apartment in Cambourne in June 1998. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar premises in Cambourne with 100 year plus lease were worth £285,000. The average ground rent payable was £55 collected yearly. The lease concluded in 2105. Considering the 79 years outstanding we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.