Why you should start your Seaton lease extension

Top reasons for lease extension now:

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

The market value of Seaton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the remaining term is less than 80 years

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years in the future.

Lenders may not finance a property with a short lease

Nearly all banks and building societies insist on a lengthy amount of time left on a leasehold residence before they will consider it as adequate security. Even if you don't need a mortgage, you should bear in mind that it is probable that someone wanting to purchase your property in the future might well do, so where they can't secure a mortgage, then the market price of your property could be adversely impacted. Since 2008 most mortgage lenders have increased the required minimum lease length that they are willing to grant a mortgage on

Get in touch with one of our Seaton lease extension solicitors or enfranchisement solicitors

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

Seaton Lease Extension Case Summaries:

Aarav, Seaton, Devon

In 2014 Aarav, came perilously close to the 80-year threshold with the lease on his leasehold apartment in Seaton. Having purchased his property two decades ago, the unexpired term was of little importance. Fortunately, he became aware that he needed to take steps soon on a lease extension. Aarav arranged for a lease extension just under the wire in August. Aarav and the landlord subsequently agreed on the final figure of £6,000 . If the lease had slid lower than 80 years, the premium would have escalated by a minimum £1,050.

Seaton case:

In 2013 we were called by Mrs S Baker who, having was assigned a lease of a garden apartment in Seaton in November 2004. The question was if we could estimate the premium would be for a 90 year lease extension. Similar homes in Seaton with a long lease were worth £240,600. The average amount of ground rent was £60 billed monthly. The lease ended on 11 January 2088. Given that there were 62 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of fees.

Seaton case:

Mr and Mrs. U Johnson purchased a first floor flat in Seaton in March 2006. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical residencies in Seaton with a long lease were valued around £174,200. The average ground rent payable was £55 billed annually. The lease ran out in 2077. Given that there were 51 years unexpired we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus costs.