There is no doubt about it a leasehold flat or house in Cambridge is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years left 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 as opposed to later. The majority of flat owners in Cambridge will meet the qualifying criteria; nevertheless a lawyer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| National Westminster Bank | |
| Skipton Building Society |
Lease extensions in Cambridge can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in lease extensions.
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.
Sebastian owned a conversion apartment in Cambridge on the market with a lease of a little over 59 years remaining. Sebastian on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Last Christmas we were called by Ms K Williams , who owned a one bedroom flat in Cambridge in November 2003. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Cambridge with a long lease were valued about £225,400. The average ground rent payable was £45 invoiced annually. The lease finished on 16 October 2090. Having 64 years unexpired we approximated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 exclusive of legals.
In 2012 we were contacted by Ms Amelia Simon who, having moved into a newly refurbished apartment in Cambridge in August 2007. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Comparable properties in Cambridge with a long lease were in the region of £270,000. The average amount of ground rent was £55 billed per annum. The lease ended on 26 February 2101. Given that there were 75 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.