Unfortunately that a Cambourne residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Cambourne property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term dips below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Cambourne will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Halifax | |
| Leeds Building Society | |
| Virgin |
The lawyers that we work with undertake Cambourne lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Dexter was the the leasehold owner of a 2 bedroom flat in Cambourne on the market with a lease of a few days over 59 years outstanding. Dexter informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Dexter to exercise his statutory right. Dexter procured expert legal guidance and secured an acceptable deal without going to tribunal and sell the property.
In 2009 we were approached by Dr H Richardson who, having moved into a one bedroom apartment in Cambourne in November 2003. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparative homes in Cambourne with a long lease were worth £218,000. The average ground rent payable was £45 collected every twelve months. The lease expired in 2089. Having 63 years remaining we approximated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of expenses.
In 2013 we were e-mailed by Mrs Jodie Collins who, having completed a recently refurbished apartment in Cambourne in August 2004. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical premises in Cambourne with a long lease were valued about £265,000. The average amount of ground rent was £50 collected per annum. The lease lapsed in 2100. Considering the 74 years remaining we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.