Top reasons for Seaton Sluice lease extension

Why you should commence your Seaton Sluice lease extension today:

A Seaton Sluice leasehold property depreciates with the years remaining on the lease.

Seaton Sluice leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Seaton Sluice tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Seaton Sluice you must see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

Seaton Sluice property with a lease extension has roughly the same value as a freehold

It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Lenders may not finance a property on a short lease

Lenders are really restricting their approach as regards to properties in Seaton Sluice with short leases. For example you may find that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so where you needed to sell, your only options would be to find a cash purchaser, or try your luck at auction thus narrowing the number of potential purchasers.

What makes us experts in Seaton Sluice lease extensions?

Irrespective of whether you are a tenant or a freeholder in Seaton Sluice,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Seaton Sluice valuers.

Seaton Sluice Lease Extension Case Summaries:

Aiden, Seaton Sluice, Northumberland

Last October Aiden, started to get close to the eighty-year mark with the lease on his basement apartment in Seaton Sluice. Having bought his flat two decades ago, the length of the lease was of little interest. Thankfully, he realised he needed to take action soon on Extending the lease. Aiden arranged for a lease extension just under the wire last April. Aiden and the freeholder via the managing agents in the end settled on the final figure of £6,000 . If the lease had fallen below 80 years, the figure would have increased by at least £1,075.

Seaton Sluice case:

Mr J Davis completed a basement apartment in Seaton Sluice in February 1995. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar properties in Seaton Sluice with a long lease were valued about £264,000. The average ground rent payable was £60 collected per annum. The lease ran out on 15 January 2079. Having 53 years remaining we estimated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 plus legals.

Seaton Sluice case:

In 2014 we were approached by Mrs Madeleine Norbert who, having purchased a first floor apartment in Seaton Sluice in April 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Identical residencies in Seaton Sluice with a long lease were valued about £225,400. The average ground rent payable was £45 invoiced per annum. The lease finished in 2090. Given that there were 64 years left we calculated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 not including professional charges.