As the length of the unexpired term of a Seascale domestic lease decreases so does its value and therefore the value of your property. If the lease has, in excess of 100 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Most flat owners in Seascale will meet the qualifying criteria; nevertheless a lawyer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Seascale with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
Regardless of whether you are a tenant or a freeholder in Seascale,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Seascale valuers.
Trailing protracted discussions with the landlord of her two bedroom apartment in Seascale, Alice initiated the lease extension process just as the lease was approaching the critical 80-year deadline. The lease extension was concluded in February 2007. The landlord’s fees were negotiated to slightly above 550 pounds.
Last Christmas we were phoned by Mr and Mrs. I David , who was assigned a lease of a first floor apartment in Seascale in October 2009. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparable properties in Seascale with an extended lease were in the region of £200,800. The average ground rent payable was £65 invoiced yearly. The lease lapsed on 15 September 2082. Given that there were 60 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.
In 2013 we were e-mailed by Dr C Ali who, having took over the lease of a basement flat in Seascale in November 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Seascale with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 invoiced annually. The lease terminated on 27 November 2093. Considering the 71 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.