The market value of Cambourne leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the unexpired lease term is less than 80 years
Leasehold residencies in Cambourne with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Cambourne,the lease extension lawyers 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.
Last Winter Teddy, came dangerously near to the eighty-year threshold with the lease on his studio flat in Cambourne. Having bought his home two decades ago, the unexpired term was of little bearing. Fortunately, he became aware that he would imminently be paying way over the odds for Extending the lease. Teddy arranged for a lease extension just in the nick of time in March. Teddy and the freeholder via the management company subsequently settled on a premium of £5,000 . If he not met the deadline, the premium would have increased by a minimum £1,050.
Last Spring we were phoned by Mr Oscar Turner , who completed a first floor apartment in Cambourne in July 2008. The dilemma was if we could approximate the price could be for a 90 year lease extension. Similar premises in Cambourne with 100 year plus lease were worth £225,400. The mid-range amount of ground rent was £45 billed annually. The lease elapsed on 18 June 2090. Considering the 64 years outstanding we calculated the premium to the landlord for the lease extension to be between £16,200 and £18,600 not including legals.
Last Summer we were phoned by Mrs K Cooper , who owned a garden flat in Cambourne in May 2010. We are asked if we could estimate the price would be to prolong the lease by ninety years. Similar properties in Cambourne with a long lease were in the region of £270,000. The average amount of ground rent was £55 collected yearly. The lease ran out on 8 September 2101. Considering the 75 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.