It’s an underpublicised truth that a Seaton Sluice residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Seaton Sluice property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term slips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Seaton Sluice will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Seaton Sluice with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Seaton Sluice,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 in-depth market knowledge and the close ties they enjoy with Seaton Sluice valuers.
Half a year ago Hugo, started to get close to the 80-year mark with the lease on his garden apartment in Seaton Sluice. In buying his flat two decades ago, the lease term was of minimal interest. As luck would have it, he recognised he needed to take action soon on a lease extension. Hugo extended the lease just in the nick of time last September. Hugo and the freeholder via the managing agents eventually agreed on sum of £5,500 . If he had missed the deadline, the premium would have increased by at least £875.
Dr Thomas King took over the lease of a garden flat in Seaton Sluice in August 1998. We are asked if we could estimate the price could be to prolong the lease by an additional years. Similar flats in Seaton Sluice with 100 year plus lease were valued around £242,600. The average amount of ground rent was £45 invoiced every twelve months. The lease came to a finish in 2092. Having 67 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including costs.
Last Spring we were contacted by Dr Jake White , who acquired a purpose-built apartment in Seaton Sluice in June 1997. We are asked if we could approximate the premium would be for a 90 year lease extension. Identical homes in Seaton Sluice with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £55 billed every twelve months. The lease expired on 17 August 2103. Given that there were 78 years remaining we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of costs.