East Dean leases on residential properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in East Dean will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In some circumstances you may not qualify. There are prescribed timetables and formalities to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your East Dean leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Jude, started to get near to the eighty-year mark with the lease on his studio apartment in East Dean. Having bought his home two decades ago, the unexpired term was of no interest. As luck would have it, he recognised he would imminently be paying an inflated amount for Extending the lease. Jude was able to extend his lease just ahead of time last June. Jude and the landlord eventually settled on the final figure of £5,000 . If he failed to meet the deadline, the price would have escalated by at least £1,150.
Last March we were phoned by Mr and Mrs. D Thompson , who was assigned a lease of a ground floor flat in East Dean in April 2012. The dilemma was if we could approximate the price would be to extend the lease by an additional years. Comparative flats in East Dean with a long lease were in the region of £216,000. The mid-range ground rent payable was £60 collected quarterly. The lease terminated in 2083. Taking into account 58 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including legals.
In 2009 we were called by Mr Max Peterson who, having was assigned a lease of a one bedroom flat in East Dean in June 1997. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Comparable homes in East Dean with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease came to a finish on 20 October 2103. Given that there were 78 years left we calculated the premium to the landlord to extend the lease to be between £7,600 and £8,800 exclusive of expenses.