On the balance of probabilities if you own a flat in Seahouses you actually own a long leasehold interest over your property
Leasehold properties in Seahouses with over one hundred years unexpired 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 freehold unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 Seahouses,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Seahouses valuers.
In recent months James, started to get close to the 80-year mark with the lease on his studio apartment in Seahouses. Having purchased his home twenty years ago, the length of the lease was of little concern. by good luck, he recognised he needed to take steps soon on a lease extension. James extended the lease just in the nick of time last April. James and the freeholder eventually settled on the final figure of £5,000 . If he had missed the deadline, the figure would have become more exhorbitant by at least £1,050.
In 2013 we were e-mailed by Mr and Mrs. H Moore who, having was assigned a lease of a first floor flat in Seahouses in April 2007. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative flats in Seahouses with an extended lease were worth £295,000. The mid-range ground rent payable was £45 billed per annum. The lease ran out in 2099. Taking into account 74 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
Mrs L Harris completed a ground floor flat in Seahouses in October 2006. We are asked if we could approximate the premium could be to extend the lease by ninety years. Comparable homes in Seahouses with a long lease were valued about £248,000. The average amount of ground rent was £65 invoiced every twelve months. The lease termination date was in 2088. Given that there were 63 years remaining we calculated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of expenses.