On the balance of probabilities where you own a flat in East Dean you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in East Dean,the lease extension lawyers 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 East Dean valuers.
Blake was the the leasehold proprietor of a conversion apartment in East Dean being sold with a lease of fraction over 72 years unexpired. Blake informally contacted his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Blake to invoke his statutory right. Blake obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Mr and Mrs. T Nelson completed a first floor flat in East Dean in April 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Comparable premises in East Dean with a long lease were valued around £248,000. The average ground rent payable was £65 invoiced yearly. The lease terminated on 16 October 2089. Taking into account 63 years unexpired we approximated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 plus costs.
Last year we were e-mailed by Dr Jayden Howard , who bought a basement flat in East Dean in September 2009. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Similar properties in East Dean with a long lease were worth £181,600. The average ground rent payable was £55 collected monthly. The lease ran out on 13 January 2078. Having 52 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of costs.