Why you should start your Seaton Sluice lease extension

Top reasons for lease extension now:

Increase your lease and increase your Seaton Sluice property value

As the length of the unexpired term of a Seaton Sluice domestic lease diminished so does its value and therefore the value of your property. If the lease has, beyond one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. Many flat owners in Seaton Sluice will meet the qualifying criteria; nevertheless a conveyancer will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

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

Leasehold residencies in Seaton Sluice with in excess of one hundred years remaining 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Lenders will not grant a mortgage on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past banks were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our Seaton Sluice lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Seaton Sluice,the lease extension experts that we work with will always be prepared 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.

Seaton Sluice Lease Extension Example Cases:

Owen, Seaton Sluice, Northumberland

Last year Owen, came perilously close to the 80-year mark with the lease on his ground floor apartment in Seaton Sluice. In buying his property two decades ago, the lease term was of no importance. Luckily, he recognised he needed to take steps soon on a lease extension. Owen extended the lease just under the wire last July. Owen and the landlord eventually settled on a premium of £5,000 . If he had missed the deadline, the amount would have escalated by a minimum £875.

Seaton Sluice case:

Mr and Mrs. D Girard acquired a one bedroom apartment in Seaton Sluice in August 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparative properties in Seaton Sluice with a long lease were in the region of £260,000. The average ground rent payable was £50 collected yearly. The lease came to a finish in 2098. Having 72 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.

Seaton Sluice case:

Last month we were phoned by Mr and Mrs. V Díaz , who completed a newly refurbished apartment in Seaton Sluice in August 2006. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparable premises in Seaton Sluice with 100 year plus lease were valued around £256,600. The average ground rent payable was £60 invoiced per annum. The lease elapsed on 24 March 2078. Given that there were 52 years left we estimated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 plus expenses.