Seaford Lease Extension - Free Consultation

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Main reasons to start your Seaford lease extension


Why you should commence your Seaford lease extension today:

Increase your lease and increase your Seaford property value

Unfortunately that a Seaford residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Seaford property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Seaford will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.

Seaford property with a lease extension is almost the same value as a freehold

Leasehold residencies in Seaford with in excess of 100 years unexpired 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Mortgage lenders may decide not to grant a mortgage with a short lease

Almost all mortgage lenders will not lend on a lease with less than seventy years remaining - although this varies between mortgage companies. A buyer will undoubtedly find it difficult to obtain a mortgage and this will result in your Seaford property being difficult to sell or to obtain finance on.

Lender Requirement
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;
Santander You must report the unexpired lease term to us and await our instructions if:
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis

We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
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
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

Why use us for your lease extension in Seaford?

The conveyancing solicitors that we work with undertake Seaford 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.

Seaford Lease Extension Case Summaries:

Muhammad, Seaford, East Sussex,

Muhammad owned a conversion flat in Seaford on the market with a lease of just over 61 years unexpired. Muhammad on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Muhammad to exercise his statutory right. Muhammad procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.

Seaford case:

Last Christmas we were contacted by Mr and Mrs. J Miller , who bought a garden apartment in Seaford in January 2000. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable flats in Seaford with an extended lease were valued around £300,000. The mid-range ground rent payable was £50 billed per annum. The lease came to a finish on 1 June 2099. Given that there were 75 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.

Seaford case:

Last August we were contacted by Dr D Phillips , who acquired a garden flat in Seaford in March 1999. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar flats in Seaford with a long lease were in the region of £250,400. The average amount of ground rent was £65 billed quarterly. The lease expired in 2088. Taking into account 64 years unexpired we estimated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 plus costs.