Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Seaton. Inevitably, the length of lease remaining reduces over time. This is often ignored and only raises itself as an issue when the property has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible leaseholders in Seaton have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. You should give due attention before delaying your Seaton lease extension. Putting off the cost now only increases the price you will ultimately incur for a lease extension
Leasehold premises in Seaton with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Skipton Building Society |
The conveyancing solicitors that we work with procure 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.
Last year Dexter, came critically near to the 80-year mark with the lease on his first floor flat in Seaton. Having purchased his flat 18 years ago, the unexpired term was of little concern. As luck would have it, he realised he needed to take steps soon on Extending the lease. Dexter arranged for a lease extension just ahead of time last April. Dexter and the landlord in the end agreed on a premium of £5,500 . If he not met the deadline, the sum would have gone up by at least £1,075.
In 2013 we were called by Mr and Mrs. N Lee who, having took over the lease of a basement apartment in Seaton in June 1996. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparable properties in Seaton with a long lease were worth £280,000. The mid-range amount of ground rent was £45 collected monthly. The lease elapsed in 2096. Considering the 70 years remaining we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.
Mr and Mrs. H Adams took over the lease of a ground floor apartment in Seaton in April 1998. The question was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable properties in Seaton with a long lease were valued around £223,400. The mid-range amount of ground rent was £60 billed monthly. The lease termination date was in 2085. Having 59 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of costs.