Seascale and Sellafield leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Seascale and Sellafield will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some situations you may not qualify. There are also strict timetables and procedures to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Seascale and Sellafield,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Seascale and Sellafield valuers.
Last year Finn, came seriously close to the eighty-year threshold with the lease on his first floor apartment in Seascale and Sellafield. Having bought his flat two decades ago, the lease term was of little significance. Luckily, he realised he would soon be paying an inflated amount for Extending the lease. Finn arranged for a lease extension just under the wire last August. Finn and the freeholder subsequently agreed on the final figure of £5,500 . If he not met the deadline, the premium would have increased by at least £1,050.
Last month we were approach by Mr Finn Evans , who bought a purpose-built apartment in Seascale and Sellafield in July 1998. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Identical properties in Seascale and Sellafield with an extended lease were worth £280,000. The mid-range ground rent payable was £45 collected annually. The lease ran out in 2094. Taking into account 69 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.
Mr Leo Bennett took over the lease of a first floor apartment in Seascale and Sellafield in October 2003. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparative homes in Seascale and Sellafield with an extended lease were valued around £216,000. The average ground rent payable was £60 invoiced every twelve months. The lease expired on 25 October 2083. Considering the 58 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus legals.