When it comes to residential leasehold premises in Cambourne, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are less than eighty years left. Leasehold owners in Cambourne with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has less than eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and levy a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Cambourne,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cambourne valuers.
Two years ago Seth, came seriously near to the 80-year threshold with the lease on his ground floor flat in Cambourne. In buying his home two decades ago, the lease term was of minimal interest. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Seth was able to extend his lease just under the wire last June. Seth and the landlord who owned the flat above in the end settled on the final figure of £5,000 . If he failed to meet the deadline, the amount would have escalated by a minimum £1,050.
Ms Emma Thompson owned a one bedroom apartment in Cambourne in February 2001. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative premises in Cambourne with an extended lease were worth £200,800. The average ground rent payable was £65 billed every twelve months. The lease expired in 2086. Considering the 60 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of expenses.
Mr I Thomas was assigned a lease of a basement flat in Cambourne in August 2005. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Cambourne with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 collected yearly. The lease lapsed in 2097. Considering the 71 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.