Comberton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Comberton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Comberton you should see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Comberton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Comberton valuers.
Evan owned a studio apartment in Comberton on the market with a lease of just over fifty eight years outstanding. Evan on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Evan to exercise his statutory right. Evan procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Mr O Bertrand took over the lease of a studio flat in Comberton in February 2006. The question was if we could estimate the premium would be for a 90 year extension to my lease. Similar premises in Comberton with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 invoiced yearly. The lease finished in 2103. Considering the 77 years outstanding we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.
Mr and Mrs. W Campbell moved into a ground floor apartment in Comberton in July 2000. The question was if we could estimate the premium could be for a ninety year lease extension. Similar properties in Comberton with 100 year plus lease were in the region of £183,600. The mid-range amount of ground rent was £65 billed per annum. The lease ended on 5 November 2083. Taking into account 57 years remaining we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of legals.