Unfortunately that a Seascale residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Seascale property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term drops under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Seascale will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, 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. |
| Birmingham Midshires | 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 |
| 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. |
Lease extensions in Seascale can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Seascale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the landlord of her studio flat in Seascale, Danielle initiated the lease extension process as the 80 year mark was quickly advancing. The legal work completed in February 2012. The landlord’s costs were kept to an absolute minimum.
In 2013 we were phoned by Dr W Kelly who, having acquired a one bedroom flat in Seascale in July 2010. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Similar residencies in Seascale with an extended lease were worth £260,000. The mid-range ground rent payable was £50 collected annually. The lease came to a finish on 23 July 2098. Given that there were 73 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Dr Henry Rivera acquired a first floor apartment in Seascale in July 2002. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar premises in Seascale with an extended lease were valued about £261,600. The average amount of ground rent was £60 billed monthly. The lease expired in 2077. Having 52 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 not including expenses.