Why you should start your Seaham lease extension

Main reasons to commence your Seaham lease extension today:

A Seaham lease depreciates with the years remaining on the lease.

There is no doubt about it a leasehold property in Seaham is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 100 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. Many flat owners in Seaham will qualify for this right; nevertheless a conveyancer will be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

Seaham property with a lease extension is almost the same value as a freehold

Leasehold properties in Seaham with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.

Mortgage lenders will not lend with a short lease

Most mortgage lenders have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against flats with shorter lease terms, particularly below 75 years as they are deemed to be unacceptable for lending purposes.

What makes us experts in Seaham lease extensions?

The conveyancing solicitors that we work with undertake Seaham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Seaham Lease Extension Case Summaries:

Jasmine, Seaham, County Durham,

Off the back of unsuccessful negotiations with the landlord of her ground floor apartment in Seaham, Jasmine commenced the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The legal work was finalised in October 2006. The freeholder’s costs were negotiated to less than 450 pounds.

Seaham case:

Mr and Mrs. C Richardson acquired a basement apartment in Seaham in July 2011. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical homes in Seaham with 100 year plus lease were worth £256,600. The mid-range ground rent payable was £60 collected annually. The lease expired on 27 June 2078. Having 52 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 plus expenses.

Seaham case:

In 2014 we were contacted by Mrs H Harris who, having took over the lease of a basement apartment in Seaham in September 2012. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Seaham with an extended lease were valued around £218,000. The mid-range amount of ground rent was £45 collected quarterly. The lease came to a finish on 16 July 2089. Having 63 years remaining we calculated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of professional charges.