Seaton and Hartley leases on residential properties are gradually losing value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Seaton and Hartley will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some circumstances you may not qualify. There are prescribed timetables and steps to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Seaton and Hartley with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder 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 in-depth market knowledge and the close ties they enjoy with Seaton and Hartley valuers.
Oscar owned a high value flat in Seaton and Hartley on the market with a lease of a few days over 59 years outstanding. Oscar informally spoke with his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be due on a lease extension were Oscar to exercise his statutory right. Oscar obtained expert advice and secured an acceptable resolution informally and readily saleable.
Dr Joseph Harris was assigned a lease of a purpose-built apartment in Seaton and Hartley in March 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Seaton and Hartley with 100 year plus lease were in the region of £265,000. The average ground rent payable was £50 billed per annum. The lease ended in 2098. Taking into account 73 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
In 2014 we were contacted by Mr and Mrs. V Bell who, having acquired a ground floor flat in Seaton and Hartley in August 2011. We are asked if we could estimate the price would be to prolong the lease by an additional years. Identical homes in Seaton and Hartley with an extended lease were worth £264,000. The average ground rent payable was £60 invoiced yearly. The lease terminated on 1 February 2078. Given that there were 53 years unexpired we approximated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 plus fees.