When it comes to domestic leasehold premises in Seaham, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than eighty years remaining. Leasehold owners in Seaham with a lease drawing near to 81 years left should seriously consider extending it sooner as opposed to later. When a lease has fewer than eighty years left, under the current statute the landlord can calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Seaham with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 conveyancers that we work with handle Seaham 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 conveyancing solicitor we work with provide it.
Last Summer Callum, came very near to the eighty-year threshold with the lease on his studio apartment in Seaham. Having bought his flat twenty years previously, the length of the lease was of little relevance. Luckily, he recognised he needed to take steps soon on Extending the lease. Callum extended the lease at the eleventh hour in July. Callum and the freeholder via the management company ultimately settled on a premium of £6,000 . If he had missed the deadline, the figure would have gone up by at least £850.
In 2013 we were e-mailed by Mr and Mrs. V Torres who, having purchased a garden apartment in Seaham in June 2010. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Comparable homes in Seaham with a long lease were in the region of £285,000. The average amount of ground rent was £55 billed monthly. The lease terminated in 2104. Taking into account 79 years unexpired we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of expenses.
Last month we were phoned by Mr and Mrs. V Hall , who acquired a garden flat in Seaham in August 2009. The dilemma was if we could estimate the price would likely be to extend the lease by 90 years. Similar residencies in Seaham with an extended lease were in the region of £193,400. The mid-range ground rent payable was £65 billed quarterly. The lease ran out on 12 February 2084. Having 59 years outstanding we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including expenses.