Seaton Delaval leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Seaton Delaval enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Seaton Delaval you should investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Seaton Delaval with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Seaton Delaval,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Seaton Delaval valuers.
Lewis owned a high value apartment in Seaton Delaval on the market with a lease of a few days over fifty eight years remaining. Lewis on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Lewis to invoke his statutory right. Lewis procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Dr Jayden Martinez moved into a one bedroom apartment in Seaton Delaval in February 2001. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparable properties in Seaton Delaval with a long lease were valued about £206,200. The mid-range amount of ground rent was £60 invoiced annually. The lease terminated in 2081. Given that there were 56 years outstanding we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus legals.
In 2013 we were called by Dr R Parker who, having bought a first floor apartment in Seaton Delaval in February 1996. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparable homes in Seaton Delaval with a long lease were worth £300,000. The average amount of ground rent was £50 invoiced per annum. The lease terminated in 2101. Considering the 76 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.