Chances are that if you own a flat in Seaton Delaval you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| 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. |
The lawyers that we work with procure Seaton Delaval lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Jayden owned a 2 bedroom flat in Seaton Delaval being sold with a lease of a little over 61 years unexpired. Jayden on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of 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 Jayden to invoke his statutory right. Jayden obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.
In 2013 we were approached by Dr Mason Reed who, having purchased a studio flat in Seaton Delaval in April 2006. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar residencies in Seaton Delaval with 100 year plus lease were worth £300,000. The mid-range amount of ground rent was £50 billed per annum. The lease expired in 2100. Having 75 years unexpired we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.
Mr U Michel purchased a basement apartment in Seaton Delaval in September 1998. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical residencies in Seaton Delaval with a long lease were worth £250,400. The mid-range amount of ground rent was £65 billed per annum. The lease elapsed on 8 May 2089. Given that there were 64 years left we estimated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 plus professional charges.