The only way is down when it comes to Seaforth lease terms. Seaforth properties that have a lease term less than than eighty years will drop in market price even faster, and the cost of extending your lease will rise.
Leasehold properties in Seaforth with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Seaforth leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted negotiations with the landlord of her two bedroom flat in Seaforth, Rachel initiated the lease extension process as the 80 year mark was rapidly nearing. The transaction completed in January 2014. The landlord’s fees were kept to an absolute minimum.
Last Autumn we were e-mailed by Dr S Carter , who owned a one bedroom flat in Seaforth in November 2012. We are asked if we could estimate the price would be to extend the lease by 90 years. Comparative residencies in Seaforth with 100 year plus lease were in the region of £243,000. The average ground rent payable was £65 billed annually. The lease finished in 2089. Taking into account 63 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including fees.
In 2014 we were contacted by Mrs I Wood who, having was assigned a lease of a one bedroom flat in Seaforth in May 2011. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable premises in Seaforth with an extended lease were in the region of £181,600. The mid-range ground rent payable was £55 collected every twelve months. The lease ended in 2078. Given that there were 52 years left we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of legals.