Main reasons to start your Seaview lease extension

Main reasons to commence your Seaview lease extension today:

A Seaview lease depreciates with the years remaining on the lease.

Seaview leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Seaview enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Seaview you should check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold residencies in Seaview with over 100 years remaining on the lease are sometimes 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 estate charges merit it.

Lending institutions may not issue a mortgage with a short lease

Lending institutions have set criteria when loaning funds charged on leasehold homes. Many will simply not lend at all once an unexpired lease term drops under a specified unexpired lease term. Many Lending institutions will not regard property with a remaining below seventy years as adequate security. In addition to this being important when selling, it is also relevant where you are wanting to refinance your Seaview property.

Why use us for your lease extension in Seaview?

The conveyancers that we work with undertake Seaview lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Seaview Lease Extension Example Cases:

Oliver, Seaview, Isle Of Wight

In recent months Oliver, started to get close to the 80-year mark with the lease on his two bedroom flat in Seaview. In buying his property 18 years ago, the unexpired term was of little relevance. Luckily, he realised he needed to take action soon on a lease extension. Oliver was able to extend his lease at the eleventh hour in August. Oliver and the freeholder via the managing agents ultimately agreed on the final figure of £5,000 . If the lease had fallen lower than eighty years, the premium would have escalated by at least £1,075.

Seaview case:

Last month we were e-mailed by Mr and Mrs. N Turner , who took over the lease of a one bedroom apartment in Seaview in August 2007. The dilemma was if we could approximate the price could be to extend the lease by ninety years. Comparative residencies in Seaview with 100 year plus lease were worth £250,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease expired on 11 May 2095. Given that there were 69 years left we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.

Seaview case:

In 2012 we were contacted by Mrs I Gómez who, having completed a garden apartment in Seaview in February 2001. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Seaview with an extended lease were valued around £290,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease expired in 2106. Considering the 80 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus legals.