The market value of East Dean leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is less than eighty years
Leasehold residencies in East Dean with over one hundred years left on the lease are sometimes 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 upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in East Dean,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 East Dean valuers.
Last October Seth, came critically near to the 80-year mark with the lease on his studio flat in East Dean. In buying his home 19 years previously, the length of the lease was of minimal concern. by good luck, he recognised he would soon be paying an escalated premium for Extending the lease. Seth was able to extend his lease just ahead of time last January. Seth and the landlord eventually settled on an amount of £5,500 . If he not met the deadline, the figure would have increased by a minimum £950.
Mr and Mrs. P Cox completed a ground floor flat in East Dean in September 1997. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Comparative residencies in East Dean with a long lease were valued around £240,600. The mid-range ground rent payable was £65 collected annually. The lease lapsed in 2087. Considering the 62 years remaining we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of fees.
Mr and Mrs. F González owned a basement flat in East Dean in June 2002. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative flats in East Dean with an extended lease were in the region of £179,200. The mid-range amount of ground rent was £55 invoiced monthly. The lease expired on 26 August 2076. Having 51 years remaining we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus costs.