Seaburn leases on residential deteriorating in value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Seaburn will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain situations you may not be entitled. There are also strict deadlines and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a landlord in Seaburn,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Seaburn valuers.
Aiden was the the leasehold proprietor of a 2 bedroom flat in Seaburn being sold with a lease of fraction over fifty eight years unexpired. Aiden on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Aiden to exercise his statutory right. Aiden procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
In 2012 we were approached by Mr I Alexander who, having completed a studio apartment in Seaburn in September 1999. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar flats in Seaburn with a long lease were worth £174,200. The mid-range ground rent payable was £55 billed annually. The lease terminated on 5 February 2076. Having 51 years unexpired we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including fees.
Dr R Bernard was assigned a lease of a ground floor apartment in Seaburn in November 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparable properties in Seaburn with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 collected quarterly. The lease came to a finish in 2096. Taking into account 71 years left we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.