On the balance of probabilities where you own a flat in Seahouses you actually own a long leasehold interest over your property
It is generally accepted that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Seahouses,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Seahouses valuers.
Trailing protracted negotiations with the landlord of her leasehold apartment in Seahouses, Megan started the lease extension process just as her lease was nearing the critical eighty-year deadline. The transaction completed in November 2011. The landlord’s costs were restricted to under 500 GBP.
Last November we were e-mailed by Mr Oliver Thompson , who was assigned a lease of a first floor apartment in Seahouses in May 2010. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparative properties in Seahouses with a long lease were valued around £290,000. The mid-range ground rent payable was £45 collected yearly. The lease lapsed in 2098. Having 72 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus professional charges.
Last month we were e-mailed by Dr Kyle Wilson , who bought a purpose-built flat in Seahouses in May 1995. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Comparative residencies in Seahouses with an extended lease were worth £233,200. The average ground rent payable was £60 billed every twelve months. The lease elapsed on 9 April 2087. Considering the 61 years left we estimated the premium to the landlord to extend the lease to be between £22,800 and £26,400 not including expenses.