The re-sale value of a leasehold property in Seaford is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that all matters can be finalised ahead of the 80 year mark. Current legislation enables Seaford qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Seaford can be a difficult process. We recommend you procure 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 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.
Gabriel was the the leasehold proprietor of a high value flat in Seaford being marketed with a lease of just over fifty eight years left. Gabriel on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Gabriel to invoke his statutory right. Gabriel obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
Last Christmas we were e-mailed by Dr O Reed , who took over the lease of a one bedroom flat in Seaford in May 2010. The question was if we could estimate the premium could be to extend the lease by ninety years. Comparative residencies in Seaford with an extended lease were in the region of £210,000. The average amount of ground rent was £50 collected every twelve months. The lease end date was in 2105. Considering the 80 years left we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.
In 2010 we were contacted by Mr Arthur Laurent who, having bought a first floor flat in Seaford in May 1996. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar residencies in Seaford with 100 year plus lease were valued around £280,000. The mid-range ground rent payable was £45 collected yearly. The lease terminated on 19 June 2094. Having 69 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.