Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Seaham. Clearly, the term of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the flat or house has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Seaham have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. Please give due deliberation before putting off your Seaham lease extension. Holding off the cost now likely increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Regardless 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 in-depth market knowledge and the close ties they enjoy with Seaham valuers.
Kyle was the the leasehold proprietor of a conversion flat in Seaham on the market with a lease of fraction over sixty years unexpired. Kyle informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kyle to invoke his statutory right. Kyle obtained expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Mr and Mrs. Y Roberts owned a ground floor flat in Seaham in February 2006. The question was if we could approximate the premium could be to extend the lease by 90 years. Identical flats in Seaham with 100 year plus lease were worth £210,600. The average ground rent payable was £45 collected annually. The lease concluded in 2087. Having 62 years remaining we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of fees.
In 2012 we were called by Dr Caleb Parker who, having acquired a one bedroom apartment in Seaham in October 1999. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Similar premises in Seaham with a long lease were valued about £265,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease expired on 6 October 2098. Considering the 73 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.