Main reasons to commence your Cambridge lease extension

Main reasons to commence your Cambridge lease extension today:

A Cambridge leasehold property depreciates with the years remaining on the lease.

It’s an underpublicised truth that a Cambridge residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Cambridge property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term dips below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Cambridge will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.

Cambridge property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies may not grant a mortgage on a short lease

Lending institutions have set criteria when loaning monies secured on leasehold property. Many will simply not lend at all once an unexpired lease term slips beneath a specified unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired below 75 years as adequate security. As well as this being important when selling, it is also relevant where you are wanting to remortgage your Cambridge home.

Why use us for your lease extension in Cambridge?

The conveyancers that we work with undertake Cambridge lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Cambridge Lease Extension Example Cases:

Naomi, Cambridge, Cambridgeshire,

In the wake of 6 months of lengthy correspondence with the freeholder of her first floor flat in Cambridge, Naomi started the lease extension process as the eighty year mark was rapidly advancing. The lease extension completed in July 2009. The landlord’s charges were restricted to approximately 600 GBP.

Cambridge case:

Last Autumn we were e-mailed by Mr Henry François , who completed a first floor apartment in Cambridge in April 1997. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Similar residencies in Cambridge with a long lease were valued about £260,000. The mid-range ground rent payable was £50 invoiced monthly. The lease elapsed in 2099. Taking into account 73 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.

Cambridge case:

In 2013 we were phoned by Ms O Campbell who, having was assigned a lease of a recently refurbished apartment in Cambridge in September 2000. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative homes in Cambridge with an extended lease were valued around £261,600. The mid-range amount of ground rent was £60 collected per annum. The lease expiry date was on 7 September 2078. Considering the 52 years left we calculated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 exclusive of legals.