East Dean leases on domestic properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in East Dean will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Leeds Building Society | |
| Santander | |
| TSB | |
| Royal Bank of Scotland |
Engaging our service gives you increased control over the value of your East Dean leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Blake owned a conversion flat in East Dean on the market with a lease of fraction over sixty years outstanding. Blake on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Blake to exercise his statutory right. Blake procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last Summer we were called by Ms A Kelly , who moved into a studio apartment in East Dean in March 2012. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparable homes in East Dean with an extended lease were valued around £275,000. The mid-range ground rent payable was £65 invoiced monthly. The lease elapsed in 2094. Given that there were 68 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.
Last year we were approach by Ms Sophie Smith , who purchased a ground floor flat in East Dean in September 2003. The question was if we could estimate the premium would be for a 90 year extension to my lease. Similar flats in East Dean with a long lease were in the region of £213,600. The mid-range amount of ground rent was £60 collected yearly. The lease end date was in 2083. Considering the 57 years remaining we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including professional charges.