The closer a domestic lease in Seaham nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 125 years remaining then this decrease may be fractional however there will become a point in time when a lease has under than eighty years left 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 primary rational as to why you should consider extending sooner as opposed to later. Most flat owners in Seaham will meet the qualifying criteria; that being said a conveyancing solicitor will be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Seaham with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service gives you enhanced control over the value of your Seaham leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted discussions with the freeholder of her garden apartment in Seaham, Amelia started the lease extension process just as the lease was approaching the critical eighty-year mark. The lease extension was concluded in October 2011. The freeholder’s charges were kept to an absolute minimum.
Ms A Laurent bought a studio flat in Seaham in February 1996. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparable flats in Seaham with 100 year plus lease were in the region of £227,800. The mid-range amount of ground rent was £45 billed every twelve months. The lease ended on 4 September 2091. Considering the 65 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.
In 2012 we were called by Ms V Edwards who, having completed a ground floor apartment in Seaham in August 1998. We are asked if we could estimate the premium could be for a ninety year lease extension. Similar homes in Seaham with a long lease were valued around £275,000. The mid-range ground rent payable was £55 collected per annum. The lease expired on 20 June 2102. Taking into account 76 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.