Chances are that where you own a flat in Seaton Sluice you actually own a long leasehold interest over your property
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 conveyancers that we work with handle Seaton Sluice 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 conveyancing solicitor we work with provide it.
14 months ago Teddy, started to get close to the eighty-year threshold with the lease on his studio apartment in Seaton Sluice. Having purchased his property two decades ago, the lease term was of no relevance. Thankfully, he recognised he would imminently be paying way over the odds for Extending the lease. Teddy was able to extend his lease just in the nick of time in May. Teddy and the landlord who owned the flat above in the end settled on an amount of £5,500 . If the lease had gone lower than 80 years, the sum would have increased by at least £1,000.
Last Summer we were called by Mr J Davies , who was assigned a lease of a first floor apartment in Seaton Sluice in February 2006. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Seaton Sluice with a long lease were worth £254,200. The average ground rent payable was £60 billed monthly. The lease finished on 24 October 2076. Taking into account 51 years remaining we approximated the premium to the landlord to extend the lease to be within £43,700 and £50,600 plus costs.
Last Winter we were e-mailed by Mr and Mrs. H Carter , who was assigned a lease of a basement apartment in Seaton Sluice in April 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in Seaton Sluice with 100 year plus lease were worth £210,600. The average amount of ground rent was £45 collected monthly. The lease concluded on 21 April 2087. Having 62 years outstanding we approximated the premium to the landlord for the lease extension to be between £18,100 and £20,800 not including legals.