When it comes to long leasehold premises in Seascale, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Anyone in Seascale with a lease approaching 81 years remaining should seriously think of extending it without delay. When a lease has under 80 years remaining, under the relevant legislation the freeholder can calculate and demand a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Seascale with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service will provide you increased control over the value of your Seascale leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ryan was the the leasehold owner of a 2 bedroom apartment in Seascale on the market with a lease of a little over sixty years outstanding. Ryan informally spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
In 2009 we were e-mailed by Mr Samuel Turner who, having acquired a purpose-built flat in Seascale in May 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Seascale with a long lease were valued around £265,000. The average amount of ground rent was £50 invoiced annually. The lease concluded in 2099. Having 74 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
Last Spring we were called by Mr U Michel , who completed a newly refurbished flat in Seascale in January 2009. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Seascale with a long lease were valued about £166,400. The average ground rent payable was £60 collected every twelve months. The lease ran out in 2079. Considering the 54 years unexpired we calculated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 not including legals.