As the the remaining lease term of a Seaton domestic lease diminished so does its value and therefore the value of your property. If the lease has, over 100 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease without delay. Many flat owners in Seaton will qualify for this right; however a conveyancer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Seaton,the lease extension lawyers 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 valuers.
Following unsuccessful correspondence with the landlord of her studio apartment in Seaton, Amelia initiated the lease extension process just as the lease was nearing the crucial eighty-year deadline. The legal work was concluded in July 2010. The landlord’s charges were kept to an absolute minimum.
Last year we were called by Mr and Mrs. C Watson , who bought a basement apartment in Seaton in May 1996. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical residencies in Seaton with a long lease were worth £191,400. The mid-range amount of ground rent was £55 invoiced annually. The lease finished in 2080. Taking into account 54 years left we approximated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 plus expenses.
In 2014 we were called by Mr and Mrs. N Thompson who, having acquired a one bedroom flat in Seaton in November 1995. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Seaton with 100 year plus lease were valued about £295,000. The average amount of ground rent was £45 collected annually. The lease end date was in 2100. Taking into account 74 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.