For those whose Seahouses home is held on a long lease, the message is clear – if no remedial action is taken, your property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to extend the lease.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same 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 decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Halifax | |
| National Westminster Bank | |
| Skipton Building Society |
Engaging our service will provide you better control over the value of your Seahouses leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Hunter was the the leasehold owner of a studio apartment in Seahouses on the market with a lease of a few days over sixty years unexpired. Hunter informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Hunter to invoke his statutory right. Hunter obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Mrs G Wood moved into a purpose-built apartment in Seahouses in May 2001. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar properties in Seahouses with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed quarterly. The lease lapsed in 2103. Given that there were 77 years remaining we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.
In 2013 we were contacted by Dr Y Lewis who, having moved into a studio flat in Seahouses in May 2007. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative residencies in Seahouses with a long lease were worth £265,200. The mid-range ground rent payable was £65 invoiced annually. The lease lapsed on 20 April 2092. Taking into account 66 years remaining we estimated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of costs.