When it comes to domestic leasehold property in Seaton, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Anyone in Seaton with a lease drawing near to 81 years left should seriously consider extending it without delay. When a lease has fewer than eighty years remaining, under the current Act the landlord is entitled to calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| TSB | |
| The Mortgage Works |
The lawyers that we work with undertake Seaton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In 2014 Arthur, started to get close to the 80-year threshold with the lease on his basement apartment in Seaton. Having purchased his flat 19 years previously, the unexpired term was of minimal bearing. by good luck, he recognised he needed to take action soon on Extending the lease. Arthur was able to extend his lease just under the wire last April. Arthur and the freeholder via the managing agents in the end settled on a premium of £6,000 . If the lease had slipped to less than 80 years, the sum would have increased by a minimum £875.
Last Autumn we were called by Mr R Taylor , who moved into a recently refurbished flat in Seaton in September 2010. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Identical flats in Seaton with an extended lease were worth £198,800. The average ground rent payable was £55 collected annually. The lease end date was on 23 January 2081. Given that there were 55 years left we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus legals.
In 2014 we were contacted by Mr and Mrs. R Brooks who, having owned a basement flat in Seaton in September 2002. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar premises in Seaton with a long lease were worth £300,000. The mid-range ground rent payable was £50 collected monthly. The lease ran out in 2101. Having 75 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.