When it comes to domestic leasehold property in Seaforth, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Anyone in Seaforth with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. Once the lease term has below 80 years outstanding, under the relevant statute the landlord is entitled to calculate and levy a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Seaforth with over 100 years outstanding on the lease are often 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 upside in purchasing the reversionary interest unless savings on ground rent and estate 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Seaforth can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Seaforth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Aarav, started to get close to the 80-year threshold with the lease on his basement flat in Seaforth. In buying his flat two decades ago, the unexpired term was of minimal relevance. Fortunately, he noticed he needed to take steps soon on a lease extension. Aarav arranged for a lease extension at the eleventh hour in September. Aarav and the freeholder eventually agreed on a premium of £5,500 . If the lease had dropped below eighty years, the figure would have become more exhorbitant by at least £875.
Last Summer we were phoned by Dr Laura Cook , who owned a studio flat in Seaforth in February 2012. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Seaforth with 100 year plus lease were valued around £285,000. The average amount of ground rent was £45 invoiced every twelve months. The lease end date was on 13 July 2097. Given that there were 72 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.
Last month we were contacted by Mrs Chloe Morris , who moved into a basement flat in Seaforth in June 2007. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Comparative residencies in Seaforth with a long lease were valued about £233,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease concluded on 8 August 2086. Given that there were 61 years remaining we calculated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 not including legals.