The nearer a domestic lease in Seascale gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, over 100 years to run then this decrease may be of little impact however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner as opposed to later. Most flat owners in Seascale will meet the qualifying criteria; however a conveyancing solicitor should be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common 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 one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
The lawyers that we work with undertake 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 conveyancing solicitor we work with provide it.
Arthur was the the leasehold owner of a high value apartment in Seascale on the market with a lease of a little over fifty eight years left. Arthur informally approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend 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. No ground rent would be payable on a lease extension were Arthur to invoke his statutory right. Arthur obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2010 we were contacted by Dr Ella Anderson who, having completed a one bedroom flat in Seascale in February 2012. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Seascale with an extended lease were worth £215,600. The average amount of ground rent was £45 billed quarterly. The lease elapsed in 2088. Taking into account 62 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including costs.
Last Summer we were contacted by Mr and Mrs. J Hill , who owned a one bedroom flat in Seascale in January 1997. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical residencies in Seascale with an extended lease were valued around £265,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease elapsed in 2099. Considering the 73 years left we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.