Why you should commence your Cambourne lease extension
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<h3> Top reasons for lease extension now:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/cambourne">Cambourne</a> lease depreciates with the years remaining on the lease.
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<p> The re-sale value of a leasehold property in Cambourne depends on how many years the lease has remaining. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that all matters can be finalised in advance of the 80 year mark. Statute enables Cambourne qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension. <h4>Cambourne property with a lease extension has roughly the same value as a freehold</h4>
<p> It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for decades to come.
<h4>Lenders may decide not to finance a property with a short lease</h4> Banks and building societies do not grant a mortgage on short residential leases. You are likely to encounter difficulties if you wish to sell your flat in Cambourne if the remaining term of your lease is less than the criteria set by most banks and building societies. Different mortgage companies have varying criteria but in the main they are looking for an unexpired term of at least 65 years.
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<th> Requirement
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:<br /><br />• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
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<td>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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<td>Birmingham Midshires</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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What makes us experts in Cambourne lease extensions?
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<p> Engaging our service gives you better control over the value of your Cambourne leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell.
The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Cambourne Lease Extension Example Cases:
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<h5> Jack, Cambourne, Cambridgeshire,</h5>
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Jack owned a 2 bedroom flat in Cambourne on the market with a lease of a little over 61 years unexpired. Jack on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jack to exercise his statutory right. Jack obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
<h5>Cambourne case:</h5>
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In 2010 we were phoned by Mr Milo Bertrand who, having completed a one bedroom flat in Cambourne in September 2001. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Cambourne with an extended lease were valued about £208,200. The average amount of ground rent was £65 billed per annum. The lease terminated in 2087. Having 61 years outstanding we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 not including costs.
<h5>Cambourne case:</h5>
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In 2012 we were approached by Mr and Mrs. F Patel who, having moved into a one bedroom apartment in Cambourne in November 2011. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Identical properties in Cambourne with an extended lease were worth £260,000. The average amount of ground rent was £50 invoiced every twelve months. The lease concluded on 12 June 2098. Having 72 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
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