There is no doubt about it a leasehold flat or house in Seascale is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 100 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner than later. Most flat owners in Seascale will meet the qualifying criteria; however a conveyancer should be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Seascale with more than 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 upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord in Seascale,the lease extension lawyers that we work with will always be willing 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 valuers.
During the course of the last few months Ali, came precariously near to the eighty-year threshold with the lease on his leasehold apartment in Seascale. Having purchased his flat two decades ago, the unexpired term was of no concern. by good luck, he noticed he would soon be paying way over the odds for Extending the lease. Ali arranged for a lease extension just under the wire last March. Ali and the freeholder via the managing agents eventually agreed on a premium of £5,500 . If the lease had dropped to less than eighty years, the premium would have increased by at least £1,000.
In 2009 we were phoned by Mr and Mrs. M Sharif who, having purchased a basement flat in Seascale in August 2004. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical flats in Seascale with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 billed quarterly. The lease terminated on 21 February 2094. Given that there were 69 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
Last Autumn we were called by Mr and Mrs. K Wilson , who completed a purpose-built apartment in Seascale in March 1997. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparable premises in Seascale with a long lease were in the region of £285,000. The average ground rent payable was £55 invoiced quarterly. The lease finished in 2104. Having 79 years as a residual term we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.