The market value of Coombe Warren leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is less than 80 years
Leasehold properties in Coombe Warren with in excess of 100 years unexpired 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 property. In such situations there is often little upside in 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | 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 freeholder in Coombe Warren,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 Warren valuers.
Harvey was the the leasehold owner of a studio flat in Coombe Warren being sold with a lease of fraction over fifty eight years outstanding. Harvey on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Harvey to exercise his statutory right. Harvey obtained expert legal guidance and secured satisfactory deal informally and sell the property.
In 2011 we were phoned by Mr and Mrs. V Hill who, having moved into a purpose-built flat in Coombe Warren in July 2012. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Similar residencies in Coombe Warren with an extended lease were in the region of £237,600. The average ground rent payable was £45 billed quarterly. The lease ran out on 8 September 2092. Taking into account 67 years unexpired we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 not including fees.
An example of a Freehold Enfranchisement case for a Coombe Warren flat 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 related to 4 flats. The number of years remaining on the existing lease(s) was 98 years.