There is no doubt about it a leasehold property in Seaham is a wasting asset as a result of the diminishing lease term. If the residual term has, over 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. Many flat owners in Seaham will qualify for this right; that being said a conveyancing solicitor will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with more than one hundred 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 residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Nationwide Building Society | |
| TSB | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
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 conveyancer we work with provide it.
Half a year ago Cameron, started to get near to the 80-year threshold with the lease on his garden apartment in Seaham. Having purchased his flat two decades ago, the unexpired term was of no significance. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Cameron extended the lease just under the wire last September. Cameron and the freeholder in the end settled on an amount of £6,000 . If he failed to meet the deadline, the amount would have gone up by at least £900.
Mr V Johnson purchased a basement apartment in Seaham in March 2000. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Seaham with a long lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease expiry date was in 2101. Having 75 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
Last month we were contacted by Mrs P Hall , who owned a one bedroom apartment in Seaham in August 2001. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical premises in Seaham with a long lease were in the region of £168,800. The mid-range ground rent payable was £60 billed monthly. The lease lapsed on 7 June 2081. Given that there were 55 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of fees.