The market value of Seaton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the remaining term is less than 80 years
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Seaton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Seaton valuers.
In 2014 Aarav, came perilously close to the 80-year threshold with the lease on his leasehold apartment in Seaton. Having purchased his property two decades ago, the unexpired term was of little importance. Fortunately, he became aware that he needed to take steps soon on a lease extension. Aarav arranged for a lease extension just under the wire in August. Aarav and the landlord subsequently agreed on the final figure of £6,000 . If the lease had slid lower than 80 years, the premium would have escalated by a minimum £1,050.
In 2013 we were called by Mrs S Baker who, having was assigned a lease of a garden apartment in Seaton in November 2001. The question was if we could estimate the premium would be for a 90 year lease extension. Similar homes in Seaton with a long lease were worth £240,600. The average amount of ground rent was £60 billed monthly. The lease ended on 11 January 2088. Given that there were 62 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of fees.
Mr and Mrs. U Johnson purchased a first floor flat in Seaton in March 2006. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical residencies in Seaton with a long lease were valued around £174,200. The average ground rent payable was £55 billed annually. The lease ran out in 2077. Given that there were 51 years unexpired we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus costs.