East Dean leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease dips below 80 years - otherwise a higher premium will be payable. Leasehold owners in East Dean will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not be entitled. There are also strict timetables and steps to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
Regardless of whether you are a tenant or a freeholder 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.
After unsuccessful discussions with the landlord of her ground floor apartment in East Dean, Ashleigh initiated the lease extension process as the eighty year deadline was quickly approaching. The legal work was concluded in September 2009. The landlord’s costs were kept to an absolute minimum.
Last Autumn we were approach by Dr B Mitchell , who moved into a garden flat in East Dean in February 2006. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparative premises in East Dean with a long lease were in the region of £265,200. The average amount of ground rent was £65 billed every twelve months. The lease expiry date was on 8 September 2092. Considering the 66 years unexpired we approximated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 not including costs.
Last Summer we were contacted by Mr U Bertrand , who was assigned a lease of a basement flat in East Dean in September 2008. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical residencies in East Dean with 100 year plus lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed quarterly. The lease finished on 27 January 2081. Having 55 years remaining we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 not including costs.