For those whose Seaham home is held on a long lease, the message is clear – if no remedial action is taken, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Halifax | |
| Nationwide Building Society | |
| The Mortgage Works |
The conveyancers that we work with procure 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 lawyer we work with provide it.
Felix owned a high value flat in Seaham being sold with a lease of a few days over 72 years unexpired. Felix on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Felix to invoke his statutory right. Felix procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
In 2013 we were called by Mrs L Mason who, having acquired a ground floor flat in Seaham in June 2005. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative homes in Seaham with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ran out in 2097. Having 71 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Last Autumn we were approach by Mr and Mrs. H Walker , who completed a first floor flat in Seaham in June 1996. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative homes in Seaham with an extended lease were valued around £254,200. The mid-range amount of ground rent was £60 billed per annum. The lease end date was in 2077. Given that there were 51 years left we approximated the premium to the landlord to extend the lease to be within £43,700 and £50,600 not including costs.