It’s a harsh certainty that a Seaton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Seaton property market.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Seaton will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Seaton can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
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 procuring Seaton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy discussions with the freeholder of her garden flat in Seaton, Alice commenced the lease extension process just as the lease was approaching the all-important eighty-year deadline. The transaction completed in February 2007. The landlord’s fees were negotiated to approximately 500 GBP.
In 2012 we were e-mailed by Mr and Mrs. I Martínez who, having acquired a one bedroom apartment in Seaton in July 1999. We are asked if we could approximate the price would be to extend the lease by ninety years. Identical premises in Seaton with an extended lease were worth £205,000. The mid-range ground rent payable was £50 collected yearly. The lease ended on 10 March 2103. Having 78 years left we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.
Dr Andrew Pérez moved into a ground floor apartment in Seaton in March 2006. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative premises in Seaton with a long lease were valued about £267,600. The average amount of ground rent was £65 invoiced monthly. The lease expiry date was in 2092. Having 67 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 not including fees.