With a domestic leasehold premises in Seaton, you are in fact renting it for a certain amount of time. In recent years 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 as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are fewer than 80 years left. Residents in Seaton with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When the lease term has below 80 years outstanding, under the current legislation the freeholder can calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Seaton with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a landlord in Seaton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Seaton valuers.
In the wake of eight months of unsuccessful correspondence with the freeholder of her first floor flat in Seaton, Melissa commenced the lease extension process just as her lease was coming close to the all-important 80-year mark. The legal work completed in October 2008. The landlord’s charges were restricted to approximately 450 GBP.
Last Spring we were phoned by Dr E Watson , who bought a garden apartment in Seaton in April 2011. The question was if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparative residencies in Seaton with 100 year plus lease were valued around £275,000. The average amount of ground rent was £45 collected per annum. The lease lapsed in 2095. Given that there were 69 years left we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
Mr and Mrs. T Cooper owned a recently refurbished apartment in Seaton in October 2010. The dilemma was if we could estimate the premium would be to extend the lease by 90 years. Comparative premises in Seaton with an extended lease were valued around £216,000. The average ground rent payable was £60 billed every twelve months. The lease expired on 19 January 2084. Considering the 58 years outstanding we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including expenses.