You are here: Home - News -

Cobalt Capital tests the water on short leasehold mortgage lending

by:
  • 05/06/2003
  • 0
Mortgage products may soon be widely available for short leasehold properties. Mortgage brokerage Co...

Mortgage products may soon be widely available for short leasehold properties. Mortgage brokerage Cobalt Capital has made it possible to borrow on high value, central London properties with short leases at normal rates.

In the past it has been hard to find lenders who will lend on such properties because, although leases can be extended, there is no way of ensuring a home owner does so, thus endangering the lenders’ security.

Cobalt has negotiated a tranche of money from a leading mutual to lend on a fixed rate of 4.25% for two years. It will be available for leases as short as 15 years on loans up to £500,000. The product has been developed for three specific private estates in Knightsbridge: the Grosvenor Estate, Wellcome Trust Estate and Cadogan Estate.

Andrew Montlake, director at Cobalt Capital, said: ‘Around Knightsbridge, many properties on these estates are down to around 20 to 25 years and it has, until now, only been private and international banks who would be able to lend on them. These banks take quite high margins and fees, so this is the first time there is a normally priced rate available.’

Montlake believes this product is a dry run for a more general market release. He said: ‘Lenders like to test the water if they are lending outside their normal experience. This particular lender has looked at the situation from its end and decided to run a test with us. If it is successful, we would expect this product to be made available to the wider broker market.’


Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @MAB_JChidgey: It's vital that action is taken so as to avert the tenure 'Leasehold' becoming discredited amongst new and existing homeo…
  • RT @OTJournalist: Problems in the free legals sector continue as one firm tells brokers not to call (and blames them for delays). https://t…
  • RT @OTJournalist: "our service to our lender clients is being affected by the high level of calls from mortgage brokers requesting updates.…
Read previous post:
FSA proposes application fees

The Financial Services Authority (FSA) has published CP180, its proposed approach to application fee...

Close