Unfortunately that a Coombe Dingle residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Coombe Dingle property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be payable. Most flat owners in Coombe Dingle will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Coombe Dingle,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Coombe Dingle valuers.
Last Autumn Callum, started to get close to the 80-year mark with the lease on his purpose- built flat in Coombe Dingle. Having bought his flat two decades ago, the unexpired term was of minimal relevance. by good luck, he realised he would soon be paying way over the odds for a lease extension. Callum arranged for a lease extension just under the wire in August. Callum and the landlord ultimately agreed on an amount of £5,500 . If the lease had dropped to less than 80 years, the price would have gone up by at least £925.
Last Spring we were e-mailed by Dr Kyle Díaz , who was assigned a lease of a one bedroom flat in Coombe Dingle in August 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable properties in Coombe Dingle with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 invoiced annually. The lease concluded in 2098. Considering the 73 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.
Last Summer we were contacted by Dr Katherine Peterson , who purchased a ground floor flat in Coombe Dingle in May 1998. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative properties in Coombe Dingle with a long lease were worth £240,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease elapsed in 2087. Given that there were 62 years remaining we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 plus fees.