Unfortunately that a Cambourne residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Cambourne property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be due. Most flat owners in Cambourne will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
It is generally considered that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Cambourne,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cambourne valuers.
Lucas owned a high value apartment in Cambourne on the market with a lease of just over 61 years left. Lucas informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Lucas to invoke his statutory right. Lucas obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
Mrs Natasha Watson acquired a one bedroom flat in Cambourne in October 2002. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparative residencies in Cambourne with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £55 collected yearly. The lease ended on 2 April 2100. Given that there were 76 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Dr E Rivera purchased a first floor apartment in Cambourne in November 2011. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative residencies in Cambourne with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected annually. The lease elapsed in 2080. Given that there were 56 years remaining we calculated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 plus fees.