Why you should commence your Seaton lease extension

Main reasons to start your Seaton lease extension today:

A Seaton lease depreciates with the years remaining on the lease.

With a residential leasehold premises in Seaton, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are less than 80 years remaining. Anyone in Seaton with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When the lease term has below eighty years outstanding, under the relevant statute the freeholder can calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.

Lending institutions will not issue a mortgage on a short lease

The propensity since over the last decade has been for banks to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Seaton?

Irrespective of whether you are a tenant or a landlord in Seaton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Seaton valuers.

Seaton Lease Extension Example Cases:

Luca, Seaton, Devon

Half a year ago Luca, came dangerously near to the eighty-year mark with the lease on his first floor flat in Seaton. In buying his home two decades ago, the unexpired term was of little importance. As luck would have it, he became aware that he needed to take action soon on a lease extension. Luca extended the lease at the eleventh hour in March. Luca and the freeholder ultimately agreed on sum of £5,500 . If the lease had gone to less than eighty years, the figure would have escalated by at least £1,050.

Seaton case:

Last Christmas we were phoned by Mr and Mrs. D Mitchell , who completed a ground floor apartment in Seaton in September 2011. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparable homes in Seaton with a long lease were in the region of £295,000. The mid-range ground rent payable was £45 billed yearly. The lease end date was on 1 February 2100. Given that there were 74 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.

Seaton case:

Mr J Hernández purchased a newly refurbished flat in Seaton in October 2004. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in Seaton with an extended lease were valued around £243,000. The average ground rent payable was £65 billed quarterly. The lease elapsed in 2089. Taking into account 63 years remaining we calculated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.