Cambourne leases on residential deteriorating in value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Cambourne will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Cambourne with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Bank of Scotland | 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in Cambourne can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 a wealth of experience dealing with Cambourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Adam, came perilously near to the 80-year mark with the lease on his first floor apartment in Cambourne. Having bought his home two decades ago, the length of the lease was of no bearing. Fortunately, he recognised he needed to take steps soon on a lease extension. Adam extended the lease just ahead of time last June. Adam and the freeholder in the end settled on an amount of £6,000 . If the lease had dropped to less than 80 years, the sum would have increased by a minimum £1,075.
Mr and Mrs. Y Norbert was assigned a lease of a ground floor flat in Cambourne in November 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Identical residencies in Cambourne with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 billed monthly. The lease lapsed in 2102. Taking into account 77 years left we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.
In 2014 we were called by Mrs Hannah Morel who, having acquired a purpose-built apartment in Cambourne in September 1997. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Comparable flats in Cambourne with 100 year plus lease were valued about £183,600. The average ground rent payable was £65 invoiced per annum. The lease termination date was on 16 October 2082. Given that there were 57 years as a residual term we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus expenses.