East Dean leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying East Dean residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in East Dean you really ought to investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a East Dean flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with more than 100 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 decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in East Dean,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with East Dean valuers.
Seth was the the leasehold owner of a studio flat in East Dean being marketed with a lease of fraction over 72 years left. Seth on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Seth to exercise his statutory right. Seth procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2013 we were contacted by Ms U Hall who, having owned a one bedroom flat in East Dean in September 1995. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Comparable homes in East Dean with an extended lease were worth £290,000. The average amount of ground rent was £45 billed per annum. The lease finished in 2098. Considering the 72 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of legals.
Last Christmas we were phoned by Mr and Mrs. U Wood , who acquired a first floor flat in East Dean in January 2008. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparative flats in East Dean with an extended lease were worth £235,600. The mid-range ground rent payable was £60 invoiced annually. The lease concluded in 2088. Considering the 62 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including fees.