Seascale and Sellafield 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 your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Seascale and Sellafield residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Seascale and Sellafield you should check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Seascale and Sellafield with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Seascale and Sellafield leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Toby, started to get close to the eighty-year threshold with the lease on his ground floor apartment in Seascale and Sellafield. In buying his property 18 years ago, the length of the lease was of no interest. Luckily, he became aware that he needed to take steps soon on Extending the lease. Toby was able to extend his lease at the eleventh hour last January. Toby and the freeholder via the management company subsequently agreed on the final figure of £5,500 . If the lease had fallen below eighty years, the figure would have become more exhorbitant by a minimum £1,150.
Last Spring we were approach by Mr and Mrs. H Laurent , who moved into a purpose-built flat in Seascale and Sellafield in September 2002. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Comparable flats in Seascale and Sellafield with a long lease were in the region of £240,600. The mid-range ground rent payable was £60 invoiced per annum. The lease expired on 5 April 2087. Having 62 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including fees.
Mr O Brown purchased a studio flat in Seascale and Sellafield in July 1999. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar flats in Seascale and Sellafield with a long lease were worth £174,200. The mid-range ground rent payable was £55 collected per annum. The lease ended on 7 April 2076. Taking into account 51 years unexpired we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.