The value of Seaton Delaval leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the remaining term is less than 80 years
Leasehold properties in Seaton Delaval with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| Yorkshire 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. |
Lease extensions in Seaton Delaval can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 a wealth of experience dealing with Seaton Delaval lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Harvey, came precariously close to the eighty-year threshold with the lease on his one bedroom apartment in Seaton Delaval. Having purchased his flat 19 years ago, the unexpired term was of no bearing. Fortunately, he noticed he would soon be paying an inflated amount for a lease extension. Harvey arranged for a lease extension just in the nick of time last July. Harvey and the landlord who owned the flat above in the end agreed on sum of £5,500 . If he not met the deadline, the amount would have become more costly by a minimum £1,100.
Last Autumn we were phoned by Dr U David , who acquired a ground floor apartment in Seaton Delaval in April 2007. The question was if we could approximate the premium would be to extend the lease by a further 90 years. Similar homes in Seaton Delaval with 100 year plus lease were worth £257,800. The mid-range amount of ground rent was £65 invoiced annually. The lease ran out in 2091. Considering the 65 years remaining we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of costs.
In 2009 we were approached by Mr and Mrs. B Murphy who, having completed a ground floor flat in Seaton Delaval in September 1995. The question was if we could estimate the premium would be for a 90 year extension to my lease. Similar residencies in Seaton Delaval with 100 year plus lease were in the region of £191,400. The mid-range ground rent payable was £55 billed every twelve months. The lease elapsed in 2080. Considering the 54 years remaining we estimated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of legals.