The value of Seaton and Hartley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is below than eighty years
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Seaton and Hartley,the lease extension lawyers that we work with will always be happy 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.
Last year Matthew, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Seaton and Hartley. In buying his home two decades ago, the length of the lease was of minimal bearing. Fortunately, he recognised he needed to take steps soon on a lease extension. Matthew extended the lease just under the wire in September. Matthew and the freeholder via the managing agents ultimately settled on a premium of £5,000 . If he had missed the deadline, the amount would have increased by a minimum £975.
Dr Finley López took over the lease of a purpose-built apartment in Seaton and Hartley in March 2012. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable flats in Seaton and Hartley with an extended lease were valued around £255,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ran out in 2095. Taking into account 70 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
In 2009 we were e-mailed by Dr O Bertrand who, having took over the lease of a purpose-built apartment in Seaton and Hartley in November 2012. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparable homes in Seaton and Hartley with a long lease were worth £246,800. The average ground rent payable was £60 billed annually. The lease ran out in 2075. Considering the 50 years left we calculated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 not including legals.