The 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 increase significantly once the remaining term is less than eighty years
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be equivalent in value to 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Seaford,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Seaford valuers.
Trailing protracted negotiations with the freeholder of her leasehold flat in Seaford, Niamh initiated the lease extension process as the eighty year threshold was rapidly nearing. The legal work was finalised in October 2011. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were phoned by Mr and Mrs. R Cox , who took over the lease of a studio flat in Seaford in October 2012. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar homes in Seaford with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 collected every twelve months. The lease concluded in 2097. Considering the 71 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.
In 2009 we were contacted by Mrs Y Morris who, having completed a one bedroom flat in Seaford in January 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Seaford with a long lease were valued around £230,800. The mid-range ground rent payable was £60 collected yearly. The lease came to a finish in 2086. Taking into account 60 years outstanding we calculated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 not including costs.