The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Seascale have the legal entitlement to extend the lease for a further 90 years in accordance with statute. Do think carefully before delaying your Seascale lease extension. Putting off the costs now simply escalates the price you will eventually be required to pay to extend the lease.
Leasehold premises in Seascale with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Using our service gives you better control over the value of your Seascale leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Benjamin owned a 2 bedroom apartment in Seascale on the market with a lease of just over 61 years remaining. Benjamin informally contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert advice and secured satisfactory resolution informally and sell the property.
In 2012 we were phoned by Mr and Mrs. S Anderson who, having was assigned a lease of a studio apartment in Seascale in October 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Similar premises in Seascale with a long lease were in the region of £183,600. The average ground rent payable was £65 invoiced every twelve months. The lease end date was in 2083. Considering the 57 years as a residual term we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
In 2010 we were called by Mr and Mrs. G Lefebvre who, having took over the lease of a first floor flat in Seascale in January 1999. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparable residencies in Seascale with 100 year plus lease were worth £242,600. The average ground rent payable was £45 billed annually. The lease came to a finish in 2093. Taking into account 67 years remaining we estimated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus fees.