Seaton leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Seaton will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain situations you may not be entitled. There are prescribed timetables and formalities to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
Leasehold properties in Seaton with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Seaton,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 valuers.
During the course of the last few months Muhammad, started to get close to the 80-year threshold with the lease on his one bedroom apartment in Seaton. In buying his home two decades ago, the length of the lease was of minimal significance. Thankfully, he noticed he needed to take action soon on a lease extension. Muhammad extended the lease just in the nick of time in September. Muhammad and the freeholder via the managing agents eventually settled on the final figure of £6,000 . If he not met the deadline, the price would have gone up by a minimum £1,000.
Last January we were phoned by Ms V Díaz , who owned a purpose-built flat in Seaton in January 2008. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparable flats in Seaton with a long lease were in the region of £210,000. The average ground rent payable was £50 collected quarterly. The lease ended on 11 May 2106. Taking into account 80 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.
Mr Nathan Simon owned a ground floor apartment in Seaton in February 2001. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Similar flats in Seaton with 100 year plus lease were worth £275,000. The average amount of ground rent was £45 collected every twelve months. The lease came to a finish in 2095. Taking into account 69 years left we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.