Unfortunately that a Seahouses residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Seahouses property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term drops below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Seahouses will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold properties in Seahouses with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Seahouses can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Seahouses lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Rory owned a high value apartment in Seahouses on the market with a lease of just over sixty years unexpired. Rory on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Rory to invoke his statutory right. Rory procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last August we were e-mailed by Dr Teddy Murphy , who purchased a garden apartment in Seahouses in October 1998. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparable premises in Seahouses with a long lease were valued about £205,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease came to a finish on 8 April 2104. Having 79 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.
Mr and Mrs. P Lewis owned a studio flat in Seahouses in October 1999. The dilemma was if we could approximate the price would likely be to extend the lease by a further 90 years. Identical homes in Seahouses with a long lease were worth £275,000. The mid-range amount of ground rent was £65 billed annually. The lease elapsed in 2093. Considering the 68 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.