As the length of the unexpired term of a Seascale residential lease lessens so does its value and therefore the value of your property. If the residual term has, beyond 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner as opposed to later. Most flat owners in Seascale will qualify for this right; that being said a lawyer should be able to confirm whether 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.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service will provide you increased control over the value of your Seascale leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the landlord of her garden apartment in Seascale, Rachael commenced the lease extension process as the 80 year threshold was rapidly nearing. The legal work was concluded in June 2014. The landlord’s charges were kept to an absolute minimum.
Mrs E Dupont purchased a one bedroom apartment in Seascale in February 1997. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable properties in Seascale with a long lease were valued about £191,000. The mid-range amount of ground rent was £65 collected every twelve months. The lease expired on 15 October 2084. Given that there were 58 years as a residual term we calculated the premium to the landlord to extend the lease to be between £23,800 and £27,400 plus fees.
Dr Lauren Gray bought a studio flat in Seascale in July 2009. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparative properties in Seascale with a long lease were in the region of £250,000. The mid-range ground rent payable was £50 invoiced annually. The lease came to a finish on 20 August 2095. Considering the 69 years outstanding we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.