It’s a harsh truth that a Seaham residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Seaham property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining dips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Seaham will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold properties in Seaham with over one hundred years unexpired on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors 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 conveyancer we work with provide it.
Thomas was the the leasehold owner of a 2 bedroom apartment in Seaham being marketed with a lease of a little over 72 years remaining. Thomas informally spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Thomas to exercise his statutory right. Thomas obtained expert advice and secured satisfactory deal informally and sell the property.
Last Summer we were approach by Mrs Mollie André , who took over the lease of a one bedroom flat in Seaham in February 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparative homes in Seaham with 100 year plus lease were in the region of £166,400. The average amount of ground rent was £60 invoiced quarterly. The lease lapsed in 2079. Taking into account 54 years remaining we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including professional charges.
Last year we were approach by Mr Evan Bernard , who took over the lease of a one bedroom apartment in Seaham in October 2007. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative homes in Seaham with a long lease were valued around £227,800. The mid-range ground rent payable was £45 collected every twelve months. The lease finished in 2090. Considering the 65 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of costs.