Seaford leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Seaford residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Seaford you should see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Seaford with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Seaford,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Seaford valuers.
Archie owned a studio flat in Seaford on the market with a lease of a few days over sixty years outstanding. Archie on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Archie to invoke his statutory right. Archie obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last March we were called by Mr and Mrs. H Collins , who was assigned a lease of a one bedroom apartment in Seaford in August 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Similar homes in Seaford with an extended lease were in the region of £216,000. The average amount of ground rent was £60 collected quarterly. The lease terminated in 2084. Considering the 58 years outstanding we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including costs.
Last month we were called by Dr Gemma Clarke , who was assigned a lease of a one bedroom flat in Seaford in May 1995. We are asked if we could estimate the price would be for a ninety year lease extension. Comparative residencies in Seaford with an extended lease were worth £205,000. The average ground rent payable was £50 invoiced quarterly. The lease came to a finish on 18 May 2104. Taking into account 78 years outstanding we approximated the premium to the landlord to extend the lease to be between £7,600 and £8,800 exclusive of fees.