When it comes to residential leasehold property in Seaton Delaval, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years left. Anyone in Seaton Delaval with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When a lease has under 80 years left, under the current legislation the landlord is entitled to calculate and charge a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Seaton Delaval,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Seaton Delaval valuers.
Subsequent to protracted correspondence with the landlord of her ground floor apartment in Seaton Delaval, Rebecca initiated the lease extension process as the 80 year deadline was swiftly coming. The legal work was finalised in August 2010. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. O Davis was assigned a lease of a one bedroom flat in Seaton Delaval in October 2009. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Seaton Delaval with an extended lease were worth £275,000. The mid-range ground rent payable was £65 collected monthly. The lease expiry date was in 2093. Taking into account 68 years left we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.
Mr and Mrs. V Michel completed a basement flat in Seaton Delaval in September 2012. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Similar residencies in Seaton Delaval with a long lease were valued around £208,600. The average ground rent payable was £60 collected every twelve months. The lease finished in 2082. Taking into account 57 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including professional charges.