On the balance of probabilities where you own a flat in Cambourne you actually own a long leasehold interest over your property
Leasehold residencies in Cambourne with over one hundred years outstanding 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 upside in purchasing 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. |
| 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. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Cambourne can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 in-depth market knowledge 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.
Alex owned a conversion flat in Cambourne being sold with a lease of a few days over 59 years outstanding. Alex informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Alex to exercise his statutory right. Alex obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Mr and Mrs. C Morris was assigned a lease of a one bedroom flat in Cambourne in September 2007. The question was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparable homes in Cambourne with a long lease were worth £285,000. The mid-range ground rent payable was £55 billed yearly. The lease finished on 13 September 2106. Having 80 years remaining we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.
Dr M Bell completed a one bedroom flat in Cambourne in May 1996. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable flats in Cambourne with a long lease were in the region of £200,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease terminated on 5 January 2086. Taking into account 60 years left we estimated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 plus legals.