Seahouses leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Seahouses tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Seahouses you would be well advised to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Seahouses with over 100 years remaining on the lease are often regarded as a ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Seahouses lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Half a year ago Benjamin, came critically close to the eighty-year mark with the lease on his leasehold apartment in Seahouses. Having bought his home 18 years ago, the unexpired term was of little concern. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Benjamin arranged for a lease extension at the eleventh hour in July. Benjamin and the freeholder ultimately settled on sum of £6,000 . If the lease had slid below eighty years, the premium would have increased by a minimum £1,075.
Last Winter we were approach by Mr and Mrs. P Davies , who moved into a garden flat in Seahouses in January 1996. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical premises in Seahouses with an extended lease were in the region of £216,000. The average amount of ground rent was £60 collected yearly. The lease elapsed on 3 April 2084. Considering the 58 years remaining we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.
Last November we were called by Mr Kyle Ricardo , who completed a recently refurbished flat in Seahouses in January 2005. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Identical residencies in Seahouses with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 invoiced per annum. The lease terminated on 22 November 2104. Taking into account 78 years remaining we estimated the premium to the freeholder to extend the lease to be within £7,600 and £8,800 exclusive of fees.