Unfortunately that a East Dean residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the East Dean property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be due. The majority of flat owners in East Dean will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in East Dean with more than one hundred years unexpired on the lease are often referred to as ‘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 upside in buying the freehold unless savings on ground rent and service charges warrant it.
|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.|
|National Westminster Bank|| Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|Santander|| You must report the unexpired lease term to us and await our instructions if: |
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis
We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
|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.|
Using our service will provide you enhanced control over the value of your East Dean leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Elijah was the the leasehold proprietor of a studio apartment in East Dean on the market with a lease of fraction over 61 years unexpired. Elijah on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Elijah to exercise his statutory right. Elijah procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Last year we were e-mailed by Mr and Mrs. T Morel , who moved into a basement apartment in East Dean in January 2002. We are asked if we could estimate the premium could be to extend the lease by 90 years. Comparative residencies in East Dean with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ran out in 2100. Given that there were 79 years remaining we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.
Mr and Mrs. P Parker was assigned a lease of a basement flat in East Dean in March 2001. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Comparative properties in East Dean with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £65 billed annually. The lease expired on 20 September 2089. Having 68 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.