With a long leasehold property in Eastbourne, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than 80 years left. Anyone in Eastbourne with a lease approaching 81 years left should seriously think of extending it without delay. When a lease has under eighty years left, under the relevant legislation the freeholder is entitled to calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you enhanced control over the value of your Eastbourne leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Zachary, came seriously near to the eighty-year threshold with the lease on his basement apartment in Eastbourne. Having bought his flat 18 years ago, the unexpired term was of no relevance. As luck would have it, he recognised he would imminently be paying way over the odds for Extending the lease. Zachary was able to extend his lease just in the nick of time last September. Zachary and the landlord eventually settled on sum of £5,500 . If he had missed the deadline, the amount would have escalated by at least £850.
Last month we were phoned by Mrs V Phillips , who acquired a garden apartment in Eastbourne in March 2008. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Similar homes in Eastbourne with 100 year plus lease were valued about £295,000. The mid-range ground rent payable was £45 billed yearly. The lease elapsed on 8 September 2101. Having 75 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.
In 2009 we were e-mailed by Ms Madeleine Cook who, having took over the lease of a garden apartment in Eastbourne in November 2003. The dilemma was if we could estimate the premium would be to extend the lease by 90 years. Comparable premises in Eastbourne with 100 year plus lease were worth £250,400. The mid-range amount of ground rent was £65 collected per annum. The lease finished in 2090. Taking into account 64 years outstanding we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 not including professional charges.