The nearer a domestic lease in East Dean nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, in excess of 125 years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in East Dean will meet the qualifying criteria; that being said a conveyancer should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in East Dean,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with East Dean valuers.
Following lengthy discussions with the freeholder of her purpose-built apartment in East Dean, Olivia started the lease extension process just as her lease was coming close to the critical eighty-year mark. The transaction was concluded in October 2011. The freeholder’s charges were negotiated to a tad over 650 pounds.
Mrs Ellie Wilson was assigned a lease of a basement flat in East Dean in May 2011. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Comparable flats in East Dean with a long lease were worth £213,600. The mid-range ground rent payable was £60 invoiced annually. The lease ran out in 2083. Considering the 57 years remaining we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 not including fees.
Last Winter we were contacted by Ms B Díaz , who bought a ground floor apartment in East Dean in March 2011. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparative premises in East Dean with 100 year plus lease were valued around £200,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease expired in 2104. Having 78 years remaining we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.