Chances are that where you own a flat in Seaview you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Seaview leasehold, as your property will be more valuable and marketable in respect 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.
Tyler was the the leasehold proprietor of a 2 bedroom flat in Seaview on the market with a lease of a few days over 61 years unexpired. Tyler informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be due on a lease extension were Tyler to invoke his statutory right. Tyler procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last year we were approach by Dr Lydia Green , who completed a one bedroom flat in Seaview in July 2003. We are asked if we could approximate the price would be to extend the lease by ninety years. Similar properties in Seaview with an extended lease were valued about £210,600. The mid-range amount of ground rent was £45 invoiced annually. The lease finished in 2088. Taking into account 62 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus legals.
Last Spring we were phoned by Mr F Torres , who purchased a recently refurbished apartment in Seaview in April 1997. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Identical homes in Seaview with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease finished on 1 April 2099. Taking into account 73 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.