Seaford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Seaford enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Seaford you must investigate if your lease has between seventy and 90 years left. There are good reasons why a Seaford leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is actioned without delay
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
Lease extensions in Seaford can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor 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 in-depth market knowledge 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 negotiations with the freeholder of her ground floor flat in Seaford, Catherine initiated the lease extension process as the 80 year threshold was quickly advancing. The transaction was finalised in May 2011. The landlord’s charges were restricted to less than 550 pounds.
Last Christmas we were called by Ms Stephanie Carter , who completed a ground floor apartment in Seaford in April 2012. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparable properties in Seaford with an extended lease were valued around £295,000. The average ground rent payable was £45 invoiced monthly. The lease expired on 17 April 2100. Taking into account 74 years remaining we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.
Mrs Anna Watson acquired a garden apartment in Seaford in March 1998. The question was if we could approximate the premium would likely be to extend the lease by 90 years. Similar premises in Seaford with a long lease were valued around £248,000. The mid-range ground rent payable was £65 invoiced annually. The lease elapsed in 2089. Taking into account 63 years unexpired we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 plus professional charges.