Seaton leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Seaton will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain cases you may not be entitled. There are also strict deadlines and formalities to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Seaton leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the landlord of her one bedroom flat in Seaton, Jordan commenced the lease extension process as the 80 year deadline was rapidly coming. The lease extension was concluded in April 2011. The landlord’s costs were restricted to slightly above 450 pounds.
In 2012 we were e-mailed by Mr and Mrs. Y Laurent who, having moved into a newly refurbished apartment in Seaton in November 2009. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable flats in Seaton with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 collected every twelve months. The lease elapsed in 2099. Taking into account 73 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
In 2014 we were approached by Mr and Mrs. B Lefebvre who, having completed a newly refurbished apartment in Seaton in May 1997. The question was if we could estimate the premium would be for a 90 year lease extension. Similar properties in Seaton with 100 year plus lease were valued around £240,600. The average amount of ground rent was £60 invoiced annually. The lease came to a finish on 18 June 2088. Given that there were 62 years remaining we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of expenses.