On the balance of probabilities if you own a flat in Seaton you actually own a long leasehold interest over your property
Leasehold properties in Seaton with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in Seaton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Seaton valuers.
In 2014 David, started to get close to the 80-year mark with the lease on his studio flat in Seaton. In buying his property 18 years ago, the lease term was of no bearing. Luckily, it dawned on him that he would soon be paying an escalated premium for Extending the lease. David extended the lease at the eleventh hour last March. David and the landlord ultimately agreed on sum of £5,500 . If he had missed the deadline, the amount would have increased by a minimum £925.
Mr R Moreau was assigned a lease of a studio flat in Seaton in March 2007. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Identical flats in Seaton with 100 year plus lease were valued around £206,200. The mid-range amount of ground rent was £55 billed per annum. The lease ended on 12 November 2081. Given that there were 56 years remaining we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including expenses.
Last Christmas we were called by Mr and Mrs. C Hill , who bought a garden flat in Seaton in November 2005. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Identical flats in Seaton with 100 year plus lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease finished in 2101. Having 76 years outstanding we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.