The value of Seaham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is below than 80 years
Leasehold residencies in Seaham with in excess of 100 years unexpired 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| 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. |
| 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 Seaham can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 dealing with Seaham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ollie was the the leasehold proprietor of a 2 bedroom apartment in Seaham being sold with a lease of a little over 61 years unexpired. Ollie informally contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
In 2013 we were contacted by Mr and Mrs. S Simon who, having owned a studio flat in Seaham in November 2012. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Seaham with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced annually. The lease ran out in 2076. Having 51 years left we estimated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 plus professional charges.
Dr W Laurent was assigned a lease of a first floor flat in Seaham in June 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Similar flats in Seaham with 100 year plus lease were worth £210,600. The average ground rent payable was £45 billed annually. The lease lapsed on 8 March 2087. Taking into account 62 years outstanding we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 not including costs.