With a domestic leasehold premises in Seaview, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are less than eighty years remaining. Residents in Seaview with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once a lease has fewer than 80 years left, under the relevant Act the freeholder is entitled to calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | 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 |
Lease extensions in Seaview can be a difficult process. We recommend you secure guidance from a lawyer 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 a wealth of experience 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.
Following lengthy negotiations with the freeholder of her one bedroom flat in Seaview, Harriet initiated the lease extension process as the eighty year threshold was rapidly advancing. The lease extension was finalised in October 2012. The landlord’s charges were negotiated to about four hundred pounds.
In 2011 we were phoned by Mr and Mrs. K Martínez who, having acquired a purpose-built flat in Seaview in March 1996. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Comparative properties in Seaview with an extended lease were worth £246,800. The mid-range amount of ground rent was £60 collected monthly. The lease terminated on 2 August 2076. Considering the 50 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 not including costs.
Mrs L Morel completed a garden flat in Seaview in February 1999. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Comparative residencies in Seaview with an extended lease were in the region of £208,200. The mid-range amount of ground rent was £65 collected annually. The lease terminated in 2087. Given that there were 61 years unexpired we estimated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of fees.