Sea Mills leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Sea Mills enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Sea Mills you should see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold premises in Sea Mills with more than one hundred years unexpired on the lease are sometimes 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 upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| Skipton Building Society | |
| Virgin | |
| Yorkshire Building Society |
Using 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 wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Sebastian, started to get near to the 80-year mark with the lease on his two bedroom flat in Sea Mills. In buying his home 18 years previously, the unexpired term was of minimal concern. Luckily, he realised he needed to take action soon on a lease extension. Sebastian extended the lease just ahead of time in August. Sebastian and the freeholder via the management company in the end settled on the final figure of £6,000 . If he failed to meet the deadline, the price would have become more costly by at least £1,125.
Last month we were approach by Ms Catherine Roux , who was assigned a lease of a ground floor flat in Sea Mills in June 1999. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Comparable homes in Sea Mills with an extended lease were in the region of £198,800. The average amount of ground rent was £55 billed per annum. The lease finished in 2081. Considering the 55 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including professional charges.
Mr and Mrs. N Ramírez took over the lease of a first floor flat in Sea Mills in January 1998. We are asked if we could estimate the price could be to extend the lease by an additional years. Comparable properties in Sea Mills with a long lease were in the region of £295,000. The average ground rent payable was £50 billed quarterly. The lease terminated in 2101. Having 75 years remaining we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.