Seaton and Hartley leases on residential properties are gradually diminishing in 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. It is the case that most Seaton and Hartley tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Seaton and Hartley you must investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a Seaton and Hartley leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
Leasehold properties in Seaton and Hartley with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Seaton and Hartley can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 procuring Seaton and Hartley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Milo, came very close to the 80-year threshold with the lease on his studio flat in Seaton and Hartley. Having purchased his flat two decades ago, the lease term was of minimal bearing. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Milo arranged for a lease extension just in the nick of time last March. Milo and the freeholder via the management company in the end settled on the final figure of £5,000 . If he not met the deadline, the sum would have gone up by at least £975.
Ms Erin Miller owned a ground floor apartment in Seaton and Hartley in March 2005. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Seaton and Hartley with an extended lease were in the region of £176,200. The mid-range amount of ground rent was £65 invoiced annually. The lease came to a finish in 2082. Taking into account 56 years outstanding we approximated the premium to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of costs.
In 2010 we were e-mailed by Dr O King who, having took over the lease of a garden apartment in Seaton and Hartley in July 2001. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Comparative premises in Seaton and Hartley with 100 year plus lease were valued about £242,600. The mid-range ground rent payable was £45 invoiced yearly. The lease elapsed on 22 July 2093. Given that there were 67 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of fees.