It’s a harsh certainty that a Seaburn residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Seaburn property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. Most flat owners in Seaburn will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Seaburn with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Seaburn leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Tommy, started to get near to the 80-year threshold with the lease on his garden apartment in Seaburn. In buying his home 19 years ago, the length of the lease was of little interest. Thankfully, he noticed he needed to take action soon on Extending the lease. Tommy arranged for a lease extension at the eleventh hour last September. Tommy and the landlord ultimately agreed on a premium of £6,000 . If the lease had dipped below 80 years, the price would have escalated by at least £1,150.
In 2012 we were phoned by Dr Lewis Norbert who, having purchased a recently refurbished apartment in Seaburn in August 2008. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar flats in Seaburn with a long lease were worth £210,000. The average amount of ground rent was £50 collected quarterly. The lease terminated on 9 May 2106. Considering the 80 years remaining we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
Last month we were approach by Mr F Gunderson , who owned a basement apartment in Seaburn in April 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Seaburn with a long lease were in the region of £275,000. The mid-range ground rent payable was £45 billed quarterly. The lease expired on 5 September 2095. Considering the 69 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.