Seascale residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancers that we work with handle Seascale 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 lawyer we work with provide it.
Off the back of unsuccessful negotiations with the freeholder of her studio flat in Seascale, Eleanor commenced the lease extension process just as her lease was coming close to the critical 80-year threshold. The legal work was concluded in July 2005. The landlord’s costs were restricted to slightly above 500 pounds.
Last Christmas we were phoned by Mr and Mrs. T Garcia , who purchased a studio flat in Seascale in September 2001. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative homes in Seascale with an extended lease were worth £218,000. The mid-range ground rent payable was £45 invoiced per annum. The lease finished on 16 July 2089. Having 63 years unexpired we estimated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 plus expenses.
In 2012 we were phoned by Mr and Mrs. E Mason who, having took over the lease of a recently refurbished apartment in Seascale in November 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparative homes in Seascale with an extended lease were in the region of £270,000. The mid-range ground rent payable was £55 billed monthly. The lease terminated in 2100. Having 74 years outstanding we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.