The only way is down when it comes to East Dean lease terms. East Dean properties that have a residual term lower than eighty years will drop in market price even faster, and the cost to extend your lease will go up.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure East Dean 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 October Callum, came critically close to the eighty-year threshold with the lease on his leasehold flat in East Dean. In buying his home two decades ago, the unexpired term was of minimal importance. Luckily, he realised he would soon be paying way over the odds for Extending the lease. Callum arranged for a lease extension at the eleventh hour in April. Callum and the freeholder via the managing agents eventually settled on an amount of £6,000 . If he had missed the deadline, the premium would have gone up by a minimum £1,075.
In 2010 we were called by Mr and Mrs. C Moreau who, having acquired a studio apartment in East Dean in January 2005. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar residencies in East Dean with 100 year plus lease were valued about £300,000. The average ground rent payable was £50 billed yearly. The lease ran out in 2101. Considering the 76 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.
In 2009 we were approached by Mr W Brooks who, having owned a purpose-built apartment in East Dean in May 2011. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar flats in East Dean with an extended lease were valued about £257,800. The mid-range ground rent payable was £65 billed yearly. The lease expired on 18 March 2090. Having 65 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including fees.