Seaton residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
Leasehold residencies in Seaton with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Seaton can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Seaton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the landlord of her basement flat in Seaton, Jordan initiated the lease extension process just as the lease was approaching the crucial eighty-year threshold. The transaction was finalised in October 2010. The landlord’s charges were restricted to less than 600 GBP.
Mr Aarav Bernard completed a purpose-built apartment in Seaton in February 1996. The question was if we could approximate the price could be for a 90 year lease extension. Comparative properties in Seaton with a long lease were valued around £285,000. The mid-range amount of ground rent was £45 billed per annum. The lease concluded in 2096. Having 72 years unexpired we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
Mr and Mrs. S André owned a garden flat in Seaton in October 2006. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical flats in Seaton with an extended lease were worth £233,200. The average ground rent payable was £60 collected quarterly. The lease termination date was in 2085. Taking into account 61 years as a residual term we estimated the premium to the landlord to extend the lease to be between £22,800 and £26,400 plus expenses.