Top reasons for Cambridge lease extension

Top reasons for lease extension now:

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

The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Cambridge may extend the lease for a further ninety years under Leasehold Reform legislation. Do give careful consideration before delaying your Cambridge lease extension. Shelving the costs today simply increases the amount you will eventually be required to pay for a lease extension.

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

Leasehold residencies in Cambridge with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Lenders may not grant a mortgage on a short lease

Many mortgage lenders will be unwilling to lend on a lease with under seventy years unexpired - although this varies between mortgage companies. A purchaser will undoubtedly find it difficult to obtain a mortgage and this will result in your Cambridge property being difficult to sell or remortgage.

Get in touch with one of our Cambridge lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Cambridge,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cambridge valuers.

Cambridge Lease Extension Case Summaries:

Benjamin, Cambridge, Cambridgeshire

14 months ago Benjamin, started to get near to the eighty-year mark with the lease on his basement apartment in Cambridge. In buying his flat two decades ago, the length of the lease was of minimal significance. Fortunately, he recognised he would imminently be paying an escalated premium for a lease extension. Benjamin extended the lease just in the nick of time last April. Benjamin and the freeholder via the managing agents in the end settled on sum of £5,000 . If the lease had slipped below 80 years, the figure would have increased by a minimum £1,125.

Cambridge case:

Last Autumn we were e-mailed by Mr and Mrs. D Walker , who acquired a basement flat in Cambridge in April 2011. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparative premises in Cambridge with a long lease were worth £166,400. The average ground rent payable was £60 billed per annum. The lease ended on 17 October 2080. Considering the 54 years outstanding we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus costs.

Cambridge case:

Last Spring we were called by Dr Jasmine Rogers , who was assigned a lease of a studio flat in Cambridge in March 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Cambridge with 100 year plus lease were in the region of £225,400. The mid-range amount of ground rent was £45 billed annually. The lease came to a finish in 2090. Having 64 years as a residual term we approximated the premium to the landlord for the lease extension to be between £15,200 and £17,600 plus fees.