Sea Mills leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Sea Mills will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some cases you may not be entitled. There are prescribed deadlines and procedures to follow once the process has started so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Coventry Building Society | 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 |
Using our service gives you better control over the value of your Sea Mills leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy discussions with the landlord of her garden apartment in Sea Mills, Emma started the lease extension process just as her lease was approaching the crucial 80-year mark. The lease extension was concluded in January 2011. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were contacted by Dr R David , who moved into a purpose-built apartment in Sea Mills in February 1997. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Similar properties in Sea Mills with an extended lease were valued around £200,000. The average amount of ground rent was £50 invoiced yearly. The lease elapsed on 12 April 2103. Given that there were 77 years left we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.
Last May we were approach by Mr and Mrs. O Patel , who completed a purpose-built apartment in Sea Mills in August 1999. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparable flats in Sea Mills with an extended lease were worth £260,200. The average amount of ground rent was £65 billed yearly. The lease elapsed on 18 September 2092. Considering the 66 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 exclusive of costs.