There is no doubt about it a leasehold flat or house in East Dean is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of 99 years remaining then this decrease may be fractional however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in East Dean will qualify for this right; nevertheless a lawyer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in East Dean with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
Lease extensions in East Dean can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring East Dean lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy negotiations with the landlord of her studio apartment in East Dean, Kate commenced the lease extension process just as her lease was approaching the crucial eighty-year threshold. The legal work was finalised in February 2011. The landlord’s charges were negotiated to about 550 pounds.
In 2014 we were phoned by Mrs Chelsea Lambert who, having completed a basement flat in East Dean in March 2000. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparative properties in East Dean with a long lease were valued about £198,800. The average ground rent payable was £55 collected quarterly. The lease came to a finish on 3 September 2081. Given that there were 55 years outstanding we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of legals.
Dr M Norbert bought a one bedroom apartment in East Dean in April 1998. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in East Dean with an extended lease were valued about £300,000. The average amount of ground rent was £50 billed yearly. The lease finished in 2101. Given that there were 75 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.