Chances are that where you own a flat in Coombe Warren you actually own a long leasehold interest over your property
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
The conveyancing solicitors that we work with undertake Coombe Warren lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After unsuccessful negotiations with the landlord of her purpose-built flat in Coombe Warren, Eleanor initiated the lease extension process just as her lease was approaching the all-important 80-year mark. The lease extension was finalised in June 2009. The landlord’s fees were kept to an absolute minimum.
In 2014 we were e-mailed by Ms G Parker who, having was assigned a lease of a ground floor apartment in Coombe Warren in November 1995. The question was if we could estimate the price could be to extend the lease by ninety years. Comparable flats in Coombe Warren with an extended lease were worth £200,800. The average ground rent payable was £65 billed monthly. The lease expired on 21 July 2085. Having 60 years remaining we estimated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 exclusive of fees.
An example of a Freehold Enfranchisement case for a Coombe Warren premises is 29 Woodstock Road in April 2014. the Tribunal determined that the premiums to be paid into court in respect of the purchase of the freehold registered at HMLR under Title N0.SY3997 should be £7,217. This case was in relation to 4 flats. The unexpired lease term was 98 years.