With a residential leasehold premises in Seascale, you effectively rent 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 may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Residents in Seascale with a lease approaching 81 years remaining should seriously consider extending it without delay. Once the lease term has below eighty years outstanding, under the relevant statute the landlord is entitled to calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Seascale with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Seascale,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Seascale valuers.
Last October Matthew, started to get near to the eighty-year mark with the lease on his studio flat in Seascale. Having purchased his flat two decades ago, the length of the lease was of no significance. As luck would have it, it dawned on him that he would imminently be paying way over the odds for a lease extension. Matthew arranged for a lease extension at the eleventh hour last May. Matthew and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If he not met the deadline, the sum would have become more costly by at least £875.
In 2014 we were called by Ms Morgan Brooks who, having took over the lease of a basement apartment in Seascale in October 1998. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative flats in Seascale with an extended lease were in the region of £250,000. The average ground rent payable was £50 invoiced annually. The lease elapsed on 21 March 2095. Given that there were 70 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
Mrs Courtney Davies was assigned a lease of a first floor apartment in Seascale in April 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative flats in Seascale with a long lease were valued around £246,800. The average amount of ground rent was £60 invoiced quarterly. The lease elapsed in 2075. Having 50 years as a residual term we approximated the premium to the landlord for the lease extension to be between £44,700 and £51,600 plus professional charges.