For anyone whose Seaburn flat is held on a long lease, our message is clear – if nothing is done, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Irrespective of whether you are a tenant or a freeholder in Seaburn,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Seaburn valuers.
Trailing unsuccessful negotiations with the freeholder of her basement flat in Seaburn, Natalie commenced the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The legal work completed in April 2007. The landlord’s costs were kept to an absolute minimum.
Last Spring we were approach by Dr Elijah Mason , who purchased a basement apartment in Seaburn in November 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Seaburn with an extended lease were in the region of £275,000. The average ground rent payable was £65 collected per annum. The lease lapsed on 12 July 2094. Considering the 68 years remaining we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.
Dr Leon Murphy completed a studio flat in Seaburn in November 2002. The question was if we could estimate the premium could be for a 90 year lease extension. Comparative flats in Seaburn with a long lease were valued around £208,600. The average ground rent payable was £60 collected annually. The lease lapsed on 6 March 2083. Taking into account 57 years as a residual term we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including fees.