The market value of Cambridge leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is less than eighty years
Leasehold properties in Cambridge with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold 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. |
| Chelsea 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. |
| Coventry Building Society | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Cambridge can be a difficult process. We recommend you procure guidance from a conveyancer 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 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.
Half a year ago Thomas, came perilously near to the eighty-year threshold with the lease on his first floor flat in Cambridge. Having bought his property 19 years ago, the unexpired term was of little importance. As luck would have it, he realised he needed to take action soon on a lease extension. Thomas extended the lease just under the wire last January. Thomas and the freeholder via the management company ultimately settled on a premium of £6,000 . If he had missed the deadline, the sum would have gone up by at least £900.
Mr and Mrs. P Leroy completed a garden flat in Cambridge in March 2008. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparative premises in Cambridge with 100 year plus lease were worth £245,000. The average ground rent payable was £45 billed every twelve months. The lease elapsed in 2093. Having 68 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
Last November we were called by Mr and Mrs. A Edwards , who bought a one bedroom flat in Cambridge in May 2009. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Cambridge with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 invoiced yearly. The lease ended in 2104. Taking into account 79 years remaining we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus costs.