Seaham leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Seaham will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some circumstances you may not qualify. There are also strict deadlines and formalities to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Seaham with more than 100 years remaining 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 buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Seaham,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Seaham valuers.
Off the back of lengthy discussions with the landlord of her one bedroom apartment in Seaham, Morgan started the lease extension process just as her lease was nearing the critical 80-year deadline. The transaction was finalised in March 2014. The freeholder’s charges were restricted to a tad over 650 pounds.
In 2010 we were contacted by Mr and Mrs. C Roux who, having bought a purpose-built apartment in Seaham in August 2012. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable flats in Seaham with an extended lease were in the region of £208,200. The mid-range ground rent payable was £65 billed per annum. The lease expired in 2087. Having 61 years left we approximated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of fees.
In 2013 we were phoned by Mr and Mrs. F Green who, having purchased a one bedroom flat in Seaham in August 2011. The question was if we could approximate the price could be to prolong the lease by a further 90 years. Comparable premises in Seaham with a long lease were valued about £260,000. The average ground rent payable was £50 billed yearly. The lease expired on 23 July 2098. Having 72 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.