Sea Mills leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Sea Mills residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Sea Mills you must investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Sea Mills with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Sea Mills leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the landlord of her two bedroom flat in Sea Mills, Catherine started the lease extension process as the eighty year deadline was rapidly advancing. The lease extension was concluded in September 2012. The landlord’s costs were restricted to less than 650 pounds.
In 2011 we were called by Mr and Mrs. R Patel who, having acquired a studio flat in Sea Mills in January 1995. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar homes in Sea Mills with an extended lease were valued around £285,000. The average ground rent payable was £45 collected annually. The lease expired in 2097. Having 72 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.
Mr and Mrs. T David completed a purpose-built apartment in Sea Mills in November 2005. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Identical homes in Sea Mills with 100 year plus lease were in the region of £233,200. The average ground rent payable was £60 billed annually. The lease termination date was in 2086. Taking into account 61 years remaining we approximated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 not including costs.