As the the remaining lease term of a Cambridge residential lease decreases so does its value and therefore the value of your property. Where the lease has, more than 125 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. The majority of flat owners in Cambridge will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Cambridge with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Cambridge,the lease extension solicitors 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.
Samuel was the the leasehold owner of a conversion apartment in Cambridge being marketed with a lease of a few days over 72 years outstanding. Samuel informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Samuel to exercise his statutory right. Samuel obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the property.
Last year we were phoned by Dr P Wilson , who owned a one bedroom flat in Cambridge in May 2010. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Identical premises in Cambridge with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £50 billed quarterly. The lease finished in 2100. Taking into account 74 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Last Autumn we were phoned by Mr and Mrs. C Ali , who took over the lease of a studio flat in Cambridge in March 2006. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparable premises in Cambridge with 100 year plus lease were valued around £166,400. The average ground rent payable was £60 collected quarterly. The lease end date was in 2080. Considering the 54 years remaining we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including professional charges.