Coombe Warren leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Coombe Warren will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Coombe Warren with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Engaging our service will provide you increased control over the value of your Coombe Warren leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy discussions with the landlord of her basement flat in Coombe Warren, Mia commenced the lease extension process just as her lease was approaching the crucial eighty-year deadline. The lease extension was finalised in March 2012. The landlord’s fees were negotiated to about 700 pounds.
In 2010 we were phoned by Dr B Williams who, having owned a ground floor flat in Coombe Warren in February 2000. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Comparable flats in Coombe Warren with an extended lease were valued about £275,000. The average ground rent payable was £55 billed quarterly. The lease concluded in 2103. Having 77 years unexpired we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.
An example of a Freehold Enfranchisement decision 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 affected 4 flats. The unexpired term was 98 years.