When it comes to domestic leasehold premises in Seaford, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than eighty years left. Residents in Seaford with a lease approaching 81 years left should seriously consider extending it without delay. Once a lease has less than eighty years remaining, under the current legislation the landlord is entitled to calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| 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. |
Lease extensions in Seaford can be a difficult process. We recommend you procure guidance from a lawyer and valuer 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 in-depth market knowledge procuring Seaford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Evan, started to get close to the eighty-year threshold with the lease on his studio flat in Seaford. In buying his home twenty years previously, the lease term was of minimal relevance. As luck would have it, he recognised he would soon be paying an inflated amount for a lease extension. Evan was able to extend his lease at the eleventh hour last April. Evan and the landlord subsequently agreed on sum of £5,000 . If the lease had slipped below eighty years, the premium would have become more exhorbitant by at least £900.
Mr C Morris was assigned a lease of a first floor flat in Seaford in June 1996. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Similar properties in Seaford with an extended lease were in the region of £196,400. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease terminated on 9 September 2080. Considering the 54 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £35,200 and £40,600 plus fees.
In 2011 we were approached by Dr B Johnson who, having purchased a first floor apartment in Seaford in February 2008. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Comparable premises in Seaford with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ended in 2100. Considering the 74 years left we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.