On the balance of probabilities if you own a flat in Coombe Dingle you actually own a long leasehold interest over your property
Leasehold premises in Coombe Dingle with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 |
| 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. |
Lease extensions in Coombe Dingle can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer 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 Coombe Dingle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jasper owned a high value flat in Coombe Dingle being marketed with a lease of just over sixty years unexpired. Jasper informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jasper to invoke his statutory right. Jasper procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last year we were phoned by Mr Aaron Watson , who completed a one bedroom flat in Coombe Dingle in August 2009. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Similar flats in Coombe Dingle with 100 year plus lease were valued about £260,200. The average amount of ground rent was £65 collected quarterly. The lease ended in 2091. Having 66 years left we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 plus legals.
Ms Alice Martin completed a one bedroom flat in Coombe Dingle in October 2011. The dilemma was if we could estimate the premium would likely be to extend the lease by an additional years. Comparative flats in Coombe Dingle with a long lease were valued around £198,800. The mid-range amount of ground rent was £55 collected annually. The lease terminated in 2080. Given that there were 55 years as a residual term we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of costs.