With a long leasehold property in Seaford, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are less than 80 years left. Anyone in Seaford with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When the lease term has under eighty years remaining, under the current statute the freeholder can calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Seaford with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Seaford can be a difficult process. We recommend you get guidance from a lawyer 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 a wealth of experience dealing with Seaford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the freeholder of her ground floor flat in Seaford, Stephanie initiated the lease extension process just as the lease was nearing the all-important 80-year mark. The transaction was concluded in February 2010. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were called by Ms Sarah Ricardo who, having acquired a one bedroom flat in Seaford in July 2001. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Similar residencies in Seaford with 100 year plus lease were worth £257,800. The mid-range amount of ground rent was £65 billed yearly. The lease ran out on 4 November 2091. Having 65 years left we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including legals.
In 2014 we were e-mailed by Ms Lucy Collins who, having took over the lease of a purpose-built apartment in Seaford in July 1999. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical residencies in Seaford with a long lease were valued about £196,400. The mid-range ground rent payable was £55 billed every twelve months. The lease came to a finish in 2080. Given that there were 54 years remaining we approximated the premium to the landlord to extend the lease to be between £35,200 and £40,600 plus legals.