There is no doubt about it a leasehold flat or house in Seaton is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of one hundred years remaining then this decrease may be fractional however there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. The majority of flat owners in Seaton will qualify for this right; that being said a conveyancer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Seaton can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Last October Riley, came perilously close to the eighty-year threshold with the lease on his one bedroom flat in Seaton. Having purchased his home twenty years previously, the lease term was of no interest. As luck would have it, he realised he needed to take steps soon on Extending the lease. Riley arranged for a lease extension just under the wire in March. Riley and the freeholder eventually settled on a premium of £5,500 . If he failed to meet the deadline, the premium would have gone up by a minimum £975.
Mr W Simon was assigned a lease of a basement apartment in Seaton in September 2008. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable flats in Seaton with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease came to a finish on 20 October 2103. Taking into account 77 years unexpired we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.
In 2013 we were phoned by Mr James Torres who, having acquired a purpose-built flat in Seaton in March 2003. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Identical properties in Seaton with an extended lease were valued around £260,200. The average amount of ground rent was £65 billed yearly. The lease ended on 14 November 2092. Given that there were 66 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of fees.