When it comes to domestic leasehold premises in Seaton, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are less than 80 years left. Residents in Seaton with a lease approaching 81 years left should seriously think of extending it without delay. Once the lease term has less than 80 years outstanding, under the current legislation the freeholder is entitled to calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Seaton with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Seaton 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 lawyer we work with provide it.
In the wake of 9 months of lengthy negotiations with the landlord of her purpose-built apartment in Seaton, Hollie commenced the lease extension process as the 80 year deadline was quickly nearing. The transaction completed in April 2015. The landlord’s fees were negotiated to under 450 GBP.
In 2013 we were contacted by Ms Daisy Nguyen who, having purchased a newly refurbished flat in Seaton in January 2012. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable premises in Seaton with 100 year plus lease were valued around £205,000. The average ground rent payable was £50 collected per annum. The lease expired on 1 October 2104. Considering the 79 years unexpired we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.
In 2012 we were phoned by Mr and Mrs. F Morgan who, having took over the lease of a studio apartment in Seaton in July 1995. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Comparative homes in Seaton with an extended lease were valued around £275,000. The mid-range ground rent payable was £65 billed annually. The lease came to a finish in 2093. Having 68 years remaining we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.