Unfortunately that a Seaforth residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Seaforth property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term slips below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Seaforth will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in Seaforth with more than one hundred years outstanding 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Seaforth,the lease extension solicitors 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 Seaforth valuers.
Subsequent to unsuccessful discussions with the freeholder of her leasehold apartment in Seaforth, Catherine initiated the lease extension process as the 80 year threshold was fast advancing. The transaction was finalised in March 2005. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. A Miller completed a studio flat in Seaforth in May 2008. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparative flats in Seaforth with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 invoiced annually. The lease ended in 2104. Considering the 79 years unexpired we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.
Mr and Mrs. B Sánchez completed a studio apartment in Seaforth in March 2011. The dilemma was if we could approximate the price could be to extend the lease by an additional years. Identical flats in Seaforth with a long lease were worth £275,000. The average amount of ground rent was £65 invoiced every twelve months. The lease ran out on 11 April 2093. Having 68 years outstanding we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.