Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Seascale. Inevitably, the term of lease left reduces over time. This is often ignored and only raises itself as an issue when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Seascale have the right to extend the lease for an additional 90 years under legislation. Please give due attention before putting off your Seascale lease extension. Holding off that expense now simply increases the price you will ultimately incur to extend your lease
Leasehold premises in Seascale with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
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 conveyancer we work with provide it.
Following protracted correspondence with the freeholder of her one bedroom flat in Seascale, Millie started the lease extension process just as the lease was approaching the all-important 80-year deadline. The transaction completed in February 2012. The landlord’s charges were kept to an absolute minimum.
Last Summer we were e-mailed by Mr and Mrs. W Wright , who took over the lease of a first floor flat in Seascale in April 1999. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical flats in Seascale with an extended lease were worth £168,800. The average ground rent payable was £60 invoiced yearly. The lease ran out on 6 September 2080. Given that there were 55 years outstanding we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including costs.
Last month we were called by Ms Madeleine Lee , who moved into a newly refurbished flat in Seascale in June 2007. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Seascale with an extended lease were in the region of £235,200. The average amount of ground rent was £45 billed quarterly. The lease ran out in 2091. Having 66 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.