Seaham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Seaham tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Seaham you must see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Seaham with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Yorkshire Building Society |
Lease extensions in Seaham can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 Seaham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Muhammad, started to get near to the 80-year mark with the lease on his studio flat in Seaham. Having purchased his flat 18 years ago, the lease term was of little relevance. Luckily, he noticed he would imminently be paying way over the odds for a lease extension. Muhammad arranged for a lease extension just ahead of time last January. Muhammad and the freeholder in the end settled on an amount of £6,000 . If the lease had slipped lower than eighty years, the sum would have gone up by a minimum £875.
In 2011 we were approached by Mr K Anderson who, having was assigned a lease of a garden apartment in Seaham in November 2007. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative homes in Seaham with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £55 billed annually. The lease expired in 2105. Taking into account 79 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of costs.
Mr A García took over the lease of a studio flat in Seaham in April 2006. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparative flats in Seaham with a long lease were valued about £193,400. The average amount of ground rent was £65 collected per annum. The lease expired on 16 October 2085. Considering the 59 years left we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of professional charges.