There is no doubt about it a leasehold flat or house in Seaton is a wasting asset as a result of the shortening lease. Where the lease has, beyond one hundred years remaining then this decrease may be of little impact however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease without delay. Many flat owners in Seaton will meet the qualifying criteria; however a conveyancer will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Using our service will provide you enhanced control over the value of your Seaton leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Nathaniel, started to get near to the eighty-year mark with the lease on his two bedroom flat in Seaton. Having bought his flat two decades ago, the lease term was of little significance. As luck would have it, he became aware that he needed to take action soon on a lease extension. Nathaniel extended the lease just under the wire last July. Nathaniel and the freeholder subsequently agreed on sum of £5,500 . If he had missed the deadline, the figure would have gone up by at least £1,125.
Last Summer we were called by Dr C François , who owned a studio apartment in Seaton in March 2008. The dilemma was if we could estimate the price would be to prolong the lease by 90 years. Comparative homes in Seaton with an extended lease were worth £275,000. The mid-range ground rent payable was £65 billed every twelve months. The lease ended in 2093. Taking into account 68 years outstanding we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.
In 2013 we were e-mailed by Dr E Allen who, having owned a ground floor apartment in Seaton in September 2003. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Identical residencies in Seaton with a long lease were valued about £208,600. The mid-range ground rent payable was £60 billed per annum. The lease expired in 2082. Considering the 57 years left we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of expenses.