Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Seascale. Inevitably, the term of lease left shortens as time goes by. This may slip by relatively unnoticed when the flat or house needs to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Seascale have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give careful deliberation before delaying your Seascale lease extension. Holding off that expense now only increases the price you will eventually incur for a lease extension
It is conventional wisdom that a property with more than 100 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 worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Seascale 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 lawyer we work with provide it.
During the course of the last few months Adam, started to get near to the 80-year threshold with the lease on his purpose- built flat in Seascale. In buying his flat two decades ago, the lease term was of no bearing. Fortunately, he noticed he needed to take action soon on a lease extension. Adam was able to extend his lease just ahead of time in July. Adam and the landlord eventually agreed on sum of £5,500 . If the lease had descended lower than 80 years, the sum would have escalated by a minimum £1,150.
Mr I White was assigned a lease of a garden apartment in Seascale in August 2008. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparable properties in Seascale with a long lease were in the region of £255,000. The average ground rent payable was £50 collected yearly. The lease ended on 19 July 2096. Given that there were 71 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
In 2014 we were e-mailed by Ms Rachel García who, having acquired a purpose-built apartment in Seascale in August 2010. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Comparative homes in Seascale with a long lease were worth £254,200. The mid-range ground rent payable was £60 billed yearly. The lease concluded in 2076. Having 51 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 not including expenses.