Seaford leases on domestic properties are gradually losing value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the current lease drops under eighty years - otherwise a higher amount will be due. Flat owners in Seaford will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In some situations you may not qualify. There are prescribed deadlines and formalities to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Seaford with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Seaford leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Arthur, started to get close to the eighty-year mark with the lease on his basement apartment in Seaford. In buying his flat 18 years previously, the length of the lease was of no bearing. Luckily, he recognised he needed to take action soon on a lease extension. Arthur was able to extend his lease at the eleventh hour last September. Arthur and the freeholder via the managing agents eventually agreed on a premium of £5,500 . If he not met the deadline, the sum would have gone up by at least £1,150.
Mrs Isabella David owned a purpose-built flat in Seaford in January 1997. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar homes in Seaford with a long lease were in the region of £240,600. The average ground rent payable was £65 invoiced every twelve months. The lease expiry date was in 2088. Given that there were 62 years unexpired we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus costs.
In 2012 we were approached by Mr Aarav André who, having moved into a ground floor apartment in Seaford in August 2000. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Identical properties in Seaford with 100 year plus lease were in the region of £179,200. The mid-range ground rent payable was £55 collected annually. The lease ended in 2077. Considering the 51 years outstanding we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus professional charges.