Cambridge leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Cambridge will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Cambridge with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| The Mortgage Works | |
| Virgin |
Lease extensions in Cambridge can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 in-depth market knowledge procuring Cambridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Omar was the the leasehold owner of a studio apartment in Cambridge on the market with a lease of a few days over 61 years outstanding. Omar on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Omar to invoke his statutory right. Omar obtained expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Last Christmas we were approach by Mrs C Robinson , who acquired a purpose-built apartment in Cambridge in April 1999. The question was if we could estimate the price could be for a 90 year lease extension. Identical flats in Cambridge with an extended lease were valued about £246,800. The mid-range ground rent payable was £60 collected every twelve months. The lease expired in 2076. Considering the 50 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 plus professional charges.
Dr Amy López bought a one bedroom flat in Cambridge in October 2011. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable flats in Cambridge with an extended lease were worth £200,800. The mid-range ground rent payable was £65 collected per annum. The lease ended in 2086. Considering the 60 years outstanding we approximated the premium to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of professional charges.