On the balance of probabilities if you own a flat in Seascale you actually own a long leasehold interest over your property
Leasehold premises in Seascale with in excess of one hundred years remaining 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Seascale,the lease extension lawyers that we work with will always be prepared 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.
During the course of the last few months Jacob, came dangerously near to the 80-year threshold with the lease on his garden apartment in Seascale. In buying his flat two decades ago, the unexpired term was of no significance. by good luck, he recognised he needed to take steps soon on a lease extension. Jacob was able to extend his lease just under the wire in April. Jacob and the freeholder eventually settled on an amount of £5,000 . If the lease had descended to less than eighty years, the premium would have become more costly by at least £925.
Last August we were called by Mr B Clark , who took over the lease of a newly refurbished apartment in Seascale in October 1997. The question was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Similar homes in Seascale with 100 year plus lease were valued around £254,200. The average ground rent payable was £60 collected annually. The lease came to a finish in 2077. Given that there were 51 years unexpired we estimated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 plus legals.
Dr Jason Lambert moved into a one bedroom flat in Seascale in January 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Identical homes in Seascale with an extended lease were valued about £215,600. The average amount of ground rent was £45 collected quarterly. The lease came to a finish in 2088. Considering the 62 years as a residual term we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 plus costs.