Seaham leases on residential deteriorating in value. if your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Seaham will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some cases you may not qualify. There are prescribed deadlines and procedures to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Seaham valuers.
After protracted discussions with the freeholder of her basement flat in Seaham, Aimee initiated the lease extension process as the 80 year deadline was quickly nearing. The lease extension was concluded in August 2006. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. L Mason was assigned a lease of a newly refurbished apartment in Seaham in August 2006. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable flats in Seaham with an extended lease were worth £285,000. The average amount of ground rent was £55 invoiced quarterly. The lease came to a finish on 2 September 2106. Considering the 80 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.
Last year we were e-mailed by Mr and Mrs. V Nelson , who purchased a studio apartment in Seaham in November 1995. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative premises in Seaham with 100 year plus lease were valued around £200,800. The mid-range amount of ground rent was £65 collected monthly. The lease terminated on 27 October 2086. Considering the 60 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including expenses.