Eastbourne leases on domestic properties are gradually losing value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the current lease dips under 80 years - otherwise a higher amount will be payable. Flat owners in Eastbourne will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some situations you may not qualify. There are also strict deadlines and formalities to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a landlord in Eastbourne,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Eastbourne valuers.
Tommy owned a studio apartment in Eastbourne on the market with a lease of a few days over 72 years outstanding. Tommy on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2010 we were contacted by Dr Benjamin Watson who, having took over the lease of a one bedroom apartment in Eastbourne in March 1995. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Identical properties in Eastbourne with 100 year plus lease were in the region of £267,600. The average ground rent payable was £65 invoiced per annum. The lease expiry date was in 2093. Given that there were 67 years left we estimated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 plus costs.
Ms J Girard completed a one bedroom flat in Eastbourne in November 2010. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Similar properties in Eastbourne with an extended lease were worth £201,200. The mid-range ground rent payable was £55 invoiced quarterly. The lease ended on 15 May 2082. Given that there were 56 years unexpired we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including fees.