The nearer a domestic lease in Seaham gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 125 years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Seaham will qualify for this right; however a lawyer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Seaham with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The lawyers that we work with handle Seaham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Zachary owned a studio apartment in Seaham on the market with a lease of just over fifty eight years outstanding. Zachary on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Zachary to exercise his statutory right. Zachary procured expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Mr and Mrs. G Johnson took over the lease of a garden flat in Seaham in February 2000. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in Seaham with 100 year plus lease were valued about £168,800. The mid-range amount of ground rent was £60 invoiced yearly. The lease end date was in 2081. Considering the 55 years unexpired we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including fees.
Mr and Mrs. T Gray was assigned a lease of a first floor apartment in Seaham in May 2010. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar residencies in Seaham with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 invoiced yearly. The lease lapsed on 11 September 2092. Considering the 66 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.