For anyone whose East Dean home is held on a long lease, the message is clear – if no remedial action is taken, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
Leasehold residencies in East Dean with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in East Dean can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring East Dean lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Caleb owned a conversion flat in East Dean being sold with a lease of a little over sixty years outstanding. Caleb informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Caleb to invoke his statutory right. Caleb procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Mr and Mrs. C Wilson bought a garden apartment in East Dean in September 2007. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable premises in East Dean with an extended lease were valued around £189,000. The average amount of ground rent was £55 collected monthly. The lease end date was on 28 June 2077. Considering the 53 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus expenses.
In 2013 we were contacted by Mr Joshua Walker who, having bought a first floor flat in East Dean in November 2000. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical residencies in East Dean with a long lease were valued around £290,000. The mid-range ground rent payable was £45 billed every twelve months. The lease terminated on 11 September 2097. Taking into account 73 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.