The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Comberton can extend the lease for an additional ninety years under legislation. Please think carefully before delaying your Comberton lease extension. Postponing that expense today simply escalates the price you will eventually be required to pay for a lease extension.
It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 Comberton can be a difficult process. We recommend you get guidance from a lawyer and valuer 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 dealing with Comberton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy discussions with the freeholder of her garden flat in Comberton, Alicia initiated the lease extension process as the 80 year deadline was rapidly nearing. The lease extension was concluded in July 2010. The freeholder’s costs were restricted to below 700 GBP.
Mrs E James completed a ground floor apartment in Comberton in August 2010. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Similar homes in Comberton with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced monthly. The lease ran out in 2100. Considering the 75 years left we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Last Summer we were phoned by Ms Y Richardson , who acquired a one bedroom flat in Comberton in August 2008. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Identical residencies in Comberton with an extended lease were valued about £173,800. The average amount of ground rent was £60 billed annually. The lease expiry date was in 2080. Given that there were 55 years as a residual term we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including legals.