Seaford leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Seaford tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Seaford you should investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally considered that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Engaging our service gives you enhanced control over the value of your Seaford leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jake owned a conversion apartment in Seaford on the market with a lease of a few days over 72 years outstanding. Jake informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Jake to exercise his statutory right. Jake procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Dr Caleb Wright took over the lease of a one bedroom flat in Seaford in January 1999. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar properties in Seaford with 100 year plus lease were in the region of £189,000. The average amount of ground rent was £55 billed yearly. The lease elapsed in 2078. Having 53 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including professional charges.
Mr and Mrs. C Ali purchased a studio apartment in Seaford in January 2001. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical homes in Seaford with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 collected quarterly. The lease terminated on 4 August 2098. Given that there were 73 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.