Seaton residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
It is generally considered that a property with in excess of one hundred 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 premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in this area.
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 in-depth market knowledge dealing with Seaton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful negotiations with the landlord of her first floor flat in Seaton, Shannon commenced the lease extension process just as the lease was approaching the all-important 80-year deadline. The lease extension was finalised in August 2009. The freeholder’s charges were negotiated to about 600 pounds.
Mr Nathan González bought a one bedroom apartment in Seaton in June 2000. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Comparable homes in Seaton with a long lease were worth £181,600. The mid-range amount of ground rent was £55 collected yearly. The lease elapsed in 2077. Considering the 52 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including professional charges.
In 2009 we were e-mailed by Dr N Rogers who, having took over the lease of a recently refurbished flat in Seaton in January 2000. The question was if we could estimate the premium would likely be to extend the lease by 90 years. Identical premises in Seaton with an extended lease were worth £290,000. The mid-range ground rent payable was £45 billed per annum. The lease terminated on 12 August 2097. Given that there were 72 years unexpired we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.