Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Cambridge. Clearly, the period of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the residence has to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Cambridge have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. Please give due deliberation before delaying your Cambridge lease extension. Putting off that expense now only increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| Halifax | |
| Santander | |
| The Mortgage Works |
Lease extensions in Cambridge can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Cambridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
David was the the leasehold owner of a 2 bedroom apartment in Cambridge being sold with a lease of a few days over 59 years left. David on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were David to invoke his statutory right. David procured expert advice and secured satisfactory resolution informally and readily saleable.
Last Autumn we were contacted by Mr and Mrs. C Wilson , who took over the lease of a purpose-built apartment in Cambridge in January 1995. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparable flats in Cambridge with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 collected annually. The lease ended on 17 June 2103. Considering the 77 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.
Last Autumn we were approach by Dr Rebecca Allen , who was assigned a lease of a garden apartment in Cambridge in June 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparative residencies in Cambridge with a long lease were worth £181,200. The average ground rent payable was £65 billed annually. The lease end date was on 22 March 2082. Having 56 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 not including professional charges.