Cambourne leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Cambourne residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Cambourne you would be well advised to see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Cambourne with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Cambourne leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of unsuccessful discussions with the freeholder of her two bedroom flat in Cambourne, Holly initiated the lease extension process just as the lease was coming close to the crucial eighty-year mark. The legal work was concluded in April 2007. The freeholder’s fees were restricted to slightly above 450 GBP.
Last Spring we were e-mailed by Mr Jackson Wright , who owned a first floor apartment in Cambourne in March 1999. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Identical homes in Cambourne with an extended lease were worth £168,800. The average ground rent payable was £60 invoiced per annum. The lease came to a finish on 18 October 2080. Considering the 55 years remaining we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.
Dr P David completed a garden flat in Cambourne in April 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Cambourne with a long lease were worth £235,200. The mid-range amount of ground rent was £45 invoiced quarterly. The lease termination date was in 2091. Taking into account 66 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.