For anyone whose Eastbourne home is held on a long lease, the message is clear – if you ignore the situation, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension.
Leasehold residencies in Eastbourne with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | 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 |
Regardless of whether you are a tenant or a landlord in Eastbourne,the lease extension experts 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 Eastbourne valuers.
Subsequent to unsuccessful discussions with the freeholder of her two bedroom flat in Eastbourne, Erin commenced the lease extension process as the 80 year deadline was swiftly advancing. The transaction was finalised in May 2011. The landlord’s costs were negotiated to under 450 pounds.
In 2014 we were phoned by Mr and Mrs. D Moore who, having completed a garden apartment in Eastbourne in April 1997. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparable residencies in Eastbourne with a long lease were valued about £208,600. The average amount of ground rent was £60 billed annually. The lease expiry date was in 2082. Having 57 years as a residual term we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of fees.
Mr and Mrs. P Rodríguez bought a purpose-built flat in Eastbourne in April 2004. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical premises in Eastbourne with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 billed quarterly. The lease elapsed in 2102. Having 77 years outstanding we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.