The nearer a residential lease in East Dean nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond 99 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending sooner than later. Many flat owners in East Dean will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The lawyers that we work with handle East Dean lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Max owned a conversion flat in East Dean on the market with a lease of a few days over sixty years left. Max informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Max to exercise his statutory right. Max procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Ms Morgan Phillips owned a newly refurbished apartment in East Dean in July 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in East Dean with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed monthly. The lease came to a finish in 2100. Considering the 74 years remaining we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
In 2010 we were e-mailed by Ms T Rose who, having took over the lease of a one bedroom flat in East Dean in March 2000. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Similar residencies in East Dean with a long lease were worth £248,000. The average ground rent payable was £65 collected per annum. The lease terminated in 2089. Having 63 years left we estimated the premium to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of professional charges.