Top reasons for Seaburn lease extension

Why you should start your Seaburn lease extension today:

A Seaburn leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Seaburn is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be finalised prior to the 80 year cut off point. Leasehold Reform legislation entitles Seaburn qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.

Lending institutions may decide not to issue a mortgage on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to get nervous at around 75 years. This may be problematic once you wish to dispose of or remortgage your flat as it will be practically unmortgageable. You may have no imminent desire to sell but when you do your buyer will have to wait 2 years before being able to exercise the right to a an extension to the lease.

Why use us for your lease extension in Seaburn?

Using our service gives you enhanced control over the value of your Seaburn leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Seaburn Lease Extension Example Cases:

Isaac, Seaburn, Tyne And Wear,

Isaac was the the leasehold owner of a 2 bedroom flat in Seaburn on the market with a lease of just over fifty eight years outstanding. Isaac on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Isaac to exercise his statutory right. Isaac obtained expert legal guidance and secured an acceptable resolution informally and sell the flat.

Seaburn case:

Mr T Johnson bought a one bedroom flat in Seaburn in February 2003. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Seaburn with an extended lease were valued around £233,200. The mid-range amount of ground rent was £60 billed per annum. The lease concluded in 2087. Having 61 years left we approximated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of costs.

Seaburn case:

Mr O Mercier bought a one bedroom apartment in Seaburn in October 1997. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparative flats in Seaburn with a long lease were valued around £166,800. The mid-range amount of ground rent was £50 billed yearly. The lease finished in 2076. Taking into account 50 years left we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 plus fees.