With a residential leasehold property in Cambourne, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are less than eighty years left. Anyone in Cambourne with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once a lease has below eighty years remaining, under the relevant legislation the landlord is entitled to calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Cambourne with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Lease extensions in Cambourne can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in lease extensions.
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 dealing with Cambourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dylan owned a high value flat in Cambourne being marketed with a lease of just over fifty eight years outstanding. Dylan on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Dylan to exercise his statutory right. Dylan procured expert advice and secured satisfactory deal without going to tribunal and sell the flat.
Last year we were contacted by Mr Michael François , who purchased a purpose-built apartment in Cambourne in July 1998. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable homes in Cambourne with an extended lease were valued about £265,000. The average ground rent payable was £50 invoiced yearly. The lease lapsed in 2098. Taking into account 73 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.
In 2012 we were phoned by Mrs Sarah Robinson who, having completed a first floor apartment in Cambourne in June 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparative properties in Cambourne with a long lease were valued around £264,000. The mid-range ground rent payable was £60 invoiced every twelve months. The lease came to a finish on 8 November 2078. Considering the 53 years unexpired we calculated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 not including legals.