There is no doubt about it a leasehold property in Seaham is a wasting asset as a result of the shortening lease. Where the lease has, beyond one hundred years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Seaham will qualify for this right; that being said a conveyancing solicitor can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Seaham with more than 100 years remaining on the lease are sometimes referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers 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 conveyancing solicitor we work with provide it.
Edward owned a high value apartment in Seaham being sold with a lease of a little over 59 years unexpired. Edward informally spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Edward to exercise his statutory right. Edward obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Dr Dylan López purchased a purpose-built apartment in Seaham in November 2007. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Identical flats in Seaham with an extended lease were in the region of £265,000. The mid-range ground rent payable was £55 collected quarterly. The lease terminated on 16 November 2099. Taking into account 74 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.
In 2009 we were called by Dr P Garcia who, having bought a first floor apartment in Seaham in October 1997. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Comparative flats in Seaham with an extended lease were in the region of £166,400. The mid-range amount of ground rent was £60 collected yearly. The lease termination date was on 18 October 2079. Given that there were 54 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 plus expenses.