Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Seaton and Hartley. Clearly, the term of lease remaining shortens as time goes by. This is often overlooked and only becomes a problem when the property has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Seaton and Hartley have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give careful consideration before delaying your Seaton and Hartley lease extension. Putting off that expense now likely increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Seaton and Hartley,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Seaton and Hartley valuers.
Trailing protracted correspondence with the landlord of her first floor apartment in Seaton and Hartley, Ella started the lease extension process just as her lease was coming close to the all-important 80-year deadline. The transaction was concluded in February 2009. The freeholder’s fees were restricted to approximately 600 pounds.
Last Autumn we were approach by Dr K Michel , who moved into a ground floor flat in Seaton and Hartley in January 2010. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparable properties in Seaton and Hartley with a long lease were in the region of £191,000. The average ground rent payable was £65 collected yearly. The lease finished in 2083. Having 58 years as a residual term we approximated the premium to the landlord for the lease extension to be within £23,800 and £27,400 not including costs.
Last Christmas we were called by Mr and Mrs. H Davis , who completed a garden apartment in Seaton and Hartley in August 1996. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparative residencies in Seaton and Hartley with an extended lease were in the region of £250,000. The average amount of ground rent was £50 invoiced every twelve months. The lease terminated in 2094. Having 69 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.