As the length of the unexpired term of a Seaham domestic lease lessens so does its value and therefore the value of your property. If the lease has, more than 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner rather than later. Many flat owners in Seaham will qualify for this right; that being said a conveyancing solicitor should be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Seaham with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Seaham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Seaham valuers.
14 months ago Arthur, started to get close to the 80-year mark with the lease on his one bedroom apartment in Seaham. Having purchased his flat twenty years previously, the lease term was of no importance. Luckily, it dawned on him that he would soon be paying an escalated premium for a lease extension. Arthur extended the lease at the eleventh hour in April. Arthur and the freeholder via the managing agents subsequently settled on the final figure of £5,500 . If he had missed the deadline, the amount would have become more costly by a minimum £1,025.
Last March we were e-mailed by Dr Joseph López , who purchased a one bedroom apartment in Seaham in August 2000. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical properties in Seaham with an extended lease were in the region of £218,000. The average amount of ground rent was £45 invoiced quarterly. The lease lapsed in 2089. Taking into account 63 years outstanding we calculated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 plus expenses.
Mr and Mrs. B Petit acquired a one bedroom flat in Seaham in November 2003. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Seaham with 100 year plus lease were valued about £265,000. The average ground rent payable was £55 billed annually. The lease expired in 2100. Having 74 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.