As the length of the unexpired term of a Cambridge residential lease decreases so does its value and therefore the value of your property. Where the lease has, beyond 99 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. Most flat owners in Cambridge will qualify for this right; that being said a lawyer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Cambridge with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Cambridge,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cambridge valuers.
After protracted discussions with the freeholder of her purpose-built apartment in Cambridge, Charlotte initiated the lease extension process just as her lease was nearing the crucial 80-year deadline. The transaction completed in March 2009. The freeholder’s charges were restricted to slightly above 500 GBP.
Last Summer we were approach by Mr and Mrs. V Reed , who purchased a studio apartment in Cambridge in April 1995. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Identical flats in Cambridge with a long lease were valued around £285,000. The mid-range ground rent payable was £55 billed yearly. The lease elapsed in 2105. Having 79 years left we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.
In 2014 we were contacted by Dr L Nguyen who, having moved into a one bedroom apartment in Cambridge in January 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Comparative properties in Cambridge with 100 year plus lease were valued around £198,400. The average ground rent payable was £65 invoiced monthly. The lease came to a finish on 1 July 2085. Having 59 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 plus costs.