Unfortunately that a Seaford residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Seaford property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be due. Most leasehold owners in Seaford will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Nationwide Building Society |
Irrespective of whether you are a tenant or a landlord in Seaford,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Seaford valuers.
Hugo was the the leasehold owner of a studio flat in Seaford on the market with a lease of just over fifty eight years unexpired. Hugo on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Hugo to exercise his statutory right. Hugo procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last year we were approach by Dr Tommy Garcia , who acquired a first floor flat in Seaford in March 1996. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Identical homes in Seaford with 100 year plus lease were worth £248,000. The average amount of ground rent was £65 invoiced every twelve months. The lease concluded on 4 January 2089. Having 63 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus expenses.
Last Winter we were called by Mr and Mrs. F Lewis , who moved into a basement flat in Seaford in May 2007. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparative premises in Seaford with a long lease were in the region of £181,600. The mid-range ground rent payable was £55 collected yearly. The lease expiry date was in 2078. Taking into account 52 years unexpired we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of professional charges.