When it comes to residential leasehold premises in Seaham, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are less than 80 years left. Residents in Seaham with a lease approaching 81 years remaining should seriously consider extending it sooner than later. Once a lease has under 80 years left, under the relevant legislation the landlord is entitled to calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Seaham leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Benjamin was the the leasehold owner of a studio apartment in Seaham on the market with a lease of a few days over 61 years remaining. Benjamin informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Benjamin to invoke his statutory right. Benjamin procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
In 2014 we were called by Mr and Mrs. I Thomas who, having was assigned a lease of a garden flat in Seaham in June 2003. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar residencies in Seaham with an extended lease were valued about £193,400. The average ground rent payable was £65 invoiced yearly. The lease ended in 2085. Considering the 59 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus fees.
In 2013 we were phoned by Mr and Mrs. N Gómez who, having acquired a ground floor flat in Seaham in May 1998. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical residencies in Seaham with an extended lease were worth £255,000. The average ground rent payable was £50 billed every twelve months. The lease finished in 2096. Having 70 years remaining we calculated the compensation to the freeholder for the lease extension to be between £10,500 and £12,000 exclusive of professional charges.