The market value of a leasehold property in Seaton Sluice is impacted by how long the lease has remaining. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that formalities can be addressed ahead of the 80 year mark. Statute enables Seaton Sluice qualifying lessees to an additional term of 90 years over and above the existing term, at a peppercorn rent (no ground rent). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service gives you enhanced control over the value of your Seaton Sluice leasehold, as your property will be more valuable and marketable in terms 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.
Two years ago Noah, started to get close to the eighty-year mark with the lease on his ground floor flat in Seaton Sluice. In buying his home twenty years previously, the lease term was of no significance. Luckily, it dawned on him that he needed to take action soon on a lease extension. Noah arranged for a lease extension just under the wire in September. Noah and the freeholder in the end settled on a premium of £5,500 . If he had missed the deadline, the amount would have become more costly by a minimum £925.
Mr Finn Brown was assigned a lease of a first floor flat in Seaton Sluice in March 1995. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Comparable flats in Seaton Sluice with a long lease were valued around £191,000. The mid-range ground rent payable was £65 invoiced yearly. The lease expired in 2084. Taking into account 58 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of legals.
Last month we were approach by Ms Jodie Cooper , who completed a ground floor flat in Seaton Sluice in May 1998. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Similar flats in Seaton Sluice with 100 year plus lease were valued around £250,000. The mid-range amount of ground rent was £50 collected yearly. The lease ran out in 2095. Considering the 69 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.