It’s a harsh truth that a Seaton and Hartley residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Seaton and Hartley property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining dips below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Seaton and Hartley will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Virgin |
The conveyancers that we work with handle Seaton and Hartley 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 conveyancer we work with provide it.
William was the the leasehold owner of a conversion flat in Seaton and Hartley on the market with a lease of fraction over fifty eight years outstanding. William informally contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were William to exercise his statutory right. William obtained expert advice and secured an acceptable resolution informally and sell the flat.
Last Spring we were contacted by Mrs E Díaz , who took over the lease of a studio flat in Seaton and Hartley in August 2011. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparative flats in Seaton and Hartley with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 invoiced per annum. The lease terminated on 19 April 2101. Taking into account 75 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
In 2010 we were e-mailed by Mr and Mrs. F Lefèvre who, having owned a first floor apartment in Seaton and Hartley in July 2003. The question was if we could approximate the price would be to prolong the lease by an additional years. Identical properties in Seaton and Hartley with an extended lease were in the region of £173,800. The average amount of ground rent was £60 billed annually. The lease termination date was on 21 June 2081. Given that there were 55 years remaining we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of legals.