The value of Seaton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is less than 80 years
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Seaton can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 Seaton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy negotiations with the freeholder of her two bedroom flat in Seaton, Kayleigh commenced the lease extension process as the eighty year threshold was swiftly nearing. The legal work was concluded in October 2005. The freeholder’s charges were restricted to a tad over 550 pounds.
In 2009 we were called by Mr and Mrs. B Hill who, having bought a studio flat in Seaton in January 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Seaton with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 collected monthly. The lease expiry date was in 2101. Taking into account 76 years remaining we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.
Last Christmas we were contacted by Dr W Bonnet , who owned a basement apartment in Seaton in June 1996. We are asked if we could estimate the premium could be to extend the lease by 90 years. Similar homes in Seaton with an extended lease were worth £257,800. The mid-range ground rent payable was £65 invoiced monthly. The lease ran out on 18 October 2090. Considering the 65 years as a residual term we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 plus costs.