Seahouses 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 the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Seahouses residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Seahouses you really ought to investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Seahouses can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer 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 procuring Seahouses lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Harrison, came critically near to the 80-year mark with the lease on his first floor flat in Seahouses. Having purchased his property two decades ago, the length of the lease was of little bearing. Thankfully, he recognised he needed to take steps soon on Extending the lease. Harrison extended the lease just under the wire in June. Harrison and the freeholder via the management company eventually agreed on an amount of £5,500 . If the lease had fallen below eighty years, the amount would have become more costly by a minimum £1,150.
Last July we were phoned by Mr and Mrs. N Johnson , who acquired a ground floor apartment in Seahouses in February 1996. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Seahouses with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 collected monthly. The lease ended on 9 August 2092. Taking into account 67 years remaining we estimated the premium to the landlord for the lease extension to be between £14,300 and £16,400 plus costs.
Dr Jamie Dupont moved into a one bedroom flat in Seahouses in April 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Similar residencies in Seahouses with a long lease were in the region of £206,200. The average ground rent payable was £60 collected per annum. The lease came to a finish in 2081. Given that there were 56 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.