Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Seaham. Clearly, the period of lease left reduces over time. This may slip by relatively unnoticed when the residence has to be disposed of or refinanced. The shorter the lease the less it is worth and the more it will cost to procure a lease extension. Qualifying long lease owners in Seaham have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. Do give due consideration before delaying your Seaham lease extension. Putting off the cost now likely increases the price you will eventually have to pay for a lease extension
Leasehold properties in Seaham with over 100 years outstanding on the lease are sometimes referred to as ‘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 purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| 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 lawyers that we work with undertake Seaham 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 conveyancer we work with provide it.
Aarav owned a 2 bedroom apartment in Seaham being marketed with a lease of just over sixty years left. Aarav informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Aarav to exercise his statutory right. Aarav procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
In 2014 we were called by Mr and Mrs. A Kelly who, having moved into a garden flat in Seaham in April 2010. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar premises in Seaham with 100 year plus lease were worth £264,000. The average ground rent payable was £60 invoiced per annum. The lease elapsed in 2077. Considering the 53 years outstanding we estimated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of expenses.
Last Christmas we were phoned by Ms Lydia Pérez , who acquired a ground floor apartment in Seaham in June 2003. The question was if we could approximate the premium would be to prolong the lease by an additional years. Identical properties in Seaham with an extended lease were in the region of £225,400. The mid-range amount of ground rent was £45 invoiced quarterly. The lease finished on 25 May 2088. Given that there were 64 years remaining we calculated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including costs.