The market value of a leasehold property in Seaview depends on how many years the lease has remaining. If it is close to or less than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be finalised ahead of the 80 year mark. Leasehold Reform legislation enables Seaview qualifying lessees to an additional term of ninety years in addition to the remaining term, at a notional rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Seaview with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 procure professional help from a conveyancer and surveyor with experience in this area.
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 dealing with Seaview lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Lewis, came perilously near to the eighty-year mark with the lease on his ground floor apartment in Seaview. Having bought his flat 18 years previously, the unexpired term was of no interest. Fortunately, he became aware that he would imminently be paying an escalated premium for a lease extension. Lewis was able to extend his lease just ahead of time last July. Lewis and the landlord who owned the flat above in the end settled on the final figure of £6,000 . If the lease had slipped below eighty years, the figure would have become more exhorbitant by a minimum £1,000.
Mr and Mrs. P Hall completed a recently refurbished flat in Seaview in June 2007. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar flats in Seaview with an extended lease were valued around £270,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease terminated on 14 March 2100. Having 74 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Mr and Mrs. D Díaz acquired a garden flat in Seaview in April 1995. We are asked if we could approximate the price could be to prolong the lease by 90 years. Similar flats in Seaview with an extended lease were valued around £166,400. The average amount of ground rent was £60 invoiced every twelve months. The lease end date was on 3 September 2080. Having 54 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including expenses.