The market value of a leasehold property in Seaford depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be addressed well before the eighty year mark. Current legislation enables Seaford qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Seaford with in excess of 100 years remaining 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 upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Seaford,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Seaford valuers.
In recent months Austin, came seriously near to the eighty-year mark with the lease on his basement flat in Seaford. Having purchased his home two decades ago, the unexpired term was of no importance. Thankfully, he became aware that he would imminently be paying an inflated amount for Extending the lease. Austin arranged for a lease extension at the eleventh hour in January. Austin and the freeholder via the management company eventually settled on a premium of £5,500 . If he not met the deadline, the premium would have escalated by at least £1,000.
Last September we were contacted by Ms U Pérez , who was assigned a lease of a first floor flat in Seaford in July 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Comparative premises in Seaford with a long lease were valued around £265,200. The average amount of ground rent was £65 collected per annum. The lease came to a finish on 12 July 2092. Taking into account 66 years left we approximated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including legals.
Mr Toby Norbert bought a one bedroom apartment in Seaford in January 2006. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Seaford with an extended lease were worth £198,800. The average ground rent payable was £55 billed quarterly. The lease ended in 2081. Having 55 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 not including costs.