Seaford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Seaford tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Seaford you would be well advised to investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Seaford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of 6 months of lengthy negotiations with the freeholder of her basement flat in Seaford, Sophia started the lease extension process as the 80 year threshold was fast nearing. The transaction was finalised in October 2011. The freeholder’s costs were restricted to under five hundred pounds.
In 2009 we were phoned by Dr T Howard who, having acquired a newly refurbished apartment in Seaford in January 2002. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative homes in Seaford with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected yearly. The lease terminated in 2103. Considering the 77 years left we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.
In 2013 we were called by Mr and Mrs. W Rose who, having completed a one bedroom apartment in Seaford in June 1997. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparable residencies in Seaford with an extended lease were worth £265,200. The average ground rent payable was £65 invoiced yearly. The lease ended on 27 May 2092. Having 66 years unexpired we approximated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 not including fees.