As the length of the unexpired term of a Coombe Dingle residential lease decreases so does its value and therefore the value of your property. Where the residual term has, over one hundred years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Coombe Dingle will qualify for this right; nevertheless a conveyancer should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Coombe Dingle with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Chelsea 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Coombe Dingle,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Coombe Dingle valuers.
Half a year ago Ethan, started to get near to the 80-year threshold with the lease on his two bedroom flat in Coombe Dingle. Having bought his property two decades ago, the unexpired term was of no relevance. Luckily, he realised he needed to take action soon on a lease extension. Ethan was able to extend his lease just ahead of time last March. Ethan and the freeholder eventually agreed on an amount of £6,000 . If the lease had gone to less than eighty years, the amount would have gone up by a minimum £875.
Mr and Mrs. S Clarke owned a ground floor flat in Coombe Dingle in September 2003. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Identical homes in Coombe Dingle with 100 year plus lease were worth £233,200. The mid-range amount of ground rent was £60 billed monthly. The lease ended on 24 May 2086. Having 61 years unexpired we approximated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of expenses.
Ms J Young was assigned a lease of a garden apartment in Coombe Dingle in November 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Similar properties in Coombe Dingle with 100 year plus lease were worth £171,800. The average ground rent payable was £55 billed annually. The lease expired on 13 October 2075. Given that there were 50 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of fees.