On the balance of probabilities if you own a flat in Coombe Warren you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Irrespective of whether you are a tenant or a landlord in Coombe Warren,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Coombe Warren valuers.
Connor owned a 2 bedroom apartment in Coombe Warren being marketed with a lease of a few days over fifty eight years unexpired. Connor on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Connor to exercise his statutory right. Connor obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2010 we were called by Mr and Mrs. L Hernández who, having bought a garden flat in Coombe Warren in June 1996. We are asked if we could estimate the price could be to prolong the lease by ninety years. Identical homes in Coombe Warren with a long lease were valued around £260,000. The average amount of ground rent was £50 billed every twelve months. The lease concluded on 8 August 2097. Taking into account 71 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
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 affected 4 flats. The unexpired term as at the valuation date was 98 years.