On the balance of probabilities if you own a flat in Cambourne you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same 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 decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Cambourne,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cambourne valuers.
Following lengthy negotiations with the landlord of her purpose-built flat in Cambourne, Robyn started the lease extension process just as the lease was nearing the critical 80-year threshold. The lease extension completed in April 2010. The landlord’s charges were restricted to about 600 GBP.
In 2010 we were called by Mrs Phoebe Rodríguez who, having completed a studio apartment in Cambourne in August 2004. The question was if we could estimate the price would be for a ninety year extension to my lease. Identical homes in Cambourne with an extended lease were valued about £193,400. The average ground rent payable was £65 collected every twelve months. The lease terminated on 3 October 2085. Having 59 years left we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of fees.
Last month we were approach by Dr Daisy Mercier , who was assigned a lease of a purpose-built flat in Cambourne in June 1998. We are asked if we could approximate the price would be for a 90 year lease extension. Similar homes in Cambourne with a long lease were in the region of £255,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended on 18 February 2096. Having 70 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.