With a residential leasehold property in Seaview, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Anyone in Seaview with a lease drawing near to 81 years left should seriously think of extending it sooner than later. When a lease has below 80 years left, under the relevant legislation the freeholder is entitled to calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Seaview with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Seaview leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Riley, came seriously close to the eighty-year threshold with the lease on his first floor apartment in Seaview. Having bought his property 19 years ago, the unexpired term was of minimal interest. Thankfully, he realised he would soon be paying an inflated amount for a lease extension. Riley arranged for a lease extension at the eleventh hour last September. Riley and the landlord in the end agreed on the final figure of £5,500 . If the lease had dropped below 80 years, the price would have increased by a minimum £1,000.
Mr Alfie García acquired a one bedroom flat in Seaview in November 2006. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Comparable properties in Seaview with a long lease were worth £200,800. The average ground rent payable was £65 collected per annum. The lease finished on 20 October 2085. Taking into account 60 years remaining we calculated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 plus expenses.
Last Autumn we were called by Ms Hollie Watson , who acquired a recently refurbished flat in Seaview in January 2005. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar premises in Seaview with 100 year plus lease were valued about £260,000. The average ground rent payable was £50 billed per annum. The lease ended on 28 November 2096. Given that there were 71 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.