Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Seaburn. Inevitably, the period of lease left reduces as time goes by. This is often ignored and only raises itself as an issue when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Seaburn have the right to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. You should give careful attention before delaying your Seaburn lease extension. Holding off the cost now simply increases the price you will ultimately have to pay to extend your lease
Leasehold premises in Seaburn with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Seaburn,the lease extension lawyers that we work with will always be prepared 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.
Half a year ago Eliot, came very close to the eighty-year mark with the lease on his garden apartment in Seaburn. Having purchased his home two decades ago, the lease term was of minimal significance. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Eliot was able to extend his lease just under the wire in March. Eliot and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If he not met the deadline, the premium would have escalated by a minimum £1,025.
In 2010 we were approached by Mr and Mrs. A Bertrand who, having owned a ground floor flat in Seaburn in March 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable premises in Seaburn with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 collected quarterly. The lease lapsed in 2095. Having 70 years remaining we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.
In 2010 we were phoned by Mr and Mrs. D Clarke who, having acquired a first floor apartment in Seaburn in January 2012. The question was if we could estimate the premium would be to extend the lease by a further 90 years. Similar premises in Seaburn with 100 year plus lease were worth £218,400. The average ground rent payable was £60 collected yearly. The lease expired on 7 February 2084. Having 59 years left we calculated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of expenses.