The market value of Seaford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the remaining term is below than 80 years
Leasehold residencies in Seaford with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure 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 conveyancing solicitor we work with provide it.
During the course of the last few months Finley, came perilously near to the eighty-year threshold with the lease on his basement apartment in Seaford. Having purchased his home 18 years previously, the lease term was of little concern. Thankfully, he realised he needed to take steps soon on a lease extension. Finley was able to extend his lease just under the wire in May. Finley and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If the lease had descended below 80 years, the sum would have become more exhorbitant by a minimum £1,025.
Last year we were e-mailed by Mrs U Bernard , who owned a ground floor apartment in Seaford in June 1999. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable premises in Seaford with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 invoiced every twelve months. The lease terminated in 2097. Having 72 years left we approximated the premium to the landlord for the lease extension to be within £11,400 and £13,200 not including costs.
Mrs Y Clarke acquired a ground floor flat in Seaford in January 2003. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Seaford with a long lease were worth £233,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease lapsed in 2086. Having 61 years unexpired we approximated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 plus legals.