The re-sale value of a leasehold property in Seaview depends on how many years the lease has left to run. If it is close to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to start the lease extension process when a lease still has 82 years to run so that formalities can be finalised ahead of the eighty year threshold. Leasehold Reform legislation entitles Seaview qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Retaining our service gives you increased control over the value of your Seaview leasehold, as your property will be more valuable and saleable in respect of 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.
Zachary was the the leasehold proprietor of a high value apartment in Seaview being sold with a lease of fraction over 59 years left. Zachary informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Zachary to exercise his statutory right. Zachary procured expert advice and was able to make a more informed decision and deal with the matter and sell the property.
Dr Jessica Jones was assigned a lease of a one bedroom apartment in Seaview in July 1998. We are asked if we could estimate the premium could be to extend the lease by ninety years. Comparative flats in Seaview with an extended lease were valued around £275,000. The mid-range ground rent payable was £55 collected monthly. The lease lapsed in 2102. Taking into account 76 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.
In 2013 we were contacted by Mr James Ali who, having acquired a garden flat in Seaview in February 2005. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Seaview with an extended lease were in the region of £176,200. The average amount of ground rent was £65 invoiced annually. The lease terminated in 2082. Given that there were 56 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 not including professional charges.