For those whose Seaview flat is held on a long lease, our message is clear – if you do nothing, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Seaview can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 procuring Seaview lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Owen, came precariously near to the eighty-year mark with the lease on his studio flat in Seaview. Having bought his home two decades ago, the length of the lease was of minimal relevance. Thankfully, he noticed he would imminently be paying an inflated amount for Extending the lease. Owen was able to extend his lease at the eleventh hour in April. Owen and the landlord in the end agreed on an amount of £5,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £875.
In 2010 we were phoned by Dr N Rose who, having bought a newly refurbished apartment in Seaview in June 2012. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Seaview with 100 year plus lease were in the region of £242,600. The mid-range ground rent payable was £45 billed quarterly. The lease lapsed on 10 July 2092. Considering the 67 years left we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus costs.
In 2014 we were e-mailed by Dr T Parker who, having bought a recently refurbished flat in Seaview in June 2009. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparative residencies in Seaview with a long lease were valued about £280,000. The average amount of ground rent was £55 collected every twelve months. The lease lapsed on 6 July 2103. Considering the 78 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.