Seaton Delaval leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Seaton Delaval residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Seaton Delaval you would be well advised to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Seaton Delaval leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Luca owned a 2 bedroom flat in Seaton Delaval being sold with a lease of just over fifty eight years outstanding. Luca on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Luca to invoke his statutory right. Luca procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2013 we were called by Mr and Mrs. L González who, having purchased a first floor apartment in Seaton Delaval in November 2011. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative homes in Seaton Delaval with a long lease were valued about £248,000. The mid-range amount of ground rent was £65 collected per annum. The lease came to a finish on 11 February 2089. Considering the 63 years unexpired we approximated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of legals.
In 2014 we were phoned by Mrs G Adams who, having moved into a ground floor apartment in Seaton Delaval in February 2003. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparable residencies in Seaton Delaval with an extended lease were valued around £181,600. The mid-range ground rent payable was £55 billed annually. The lease finished in 2078. Having 52 years left we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of legals.