On the balance of probabilities where you own a flat in East Dean you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your East Dean leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Finn, came perilously close to the 80-year threshold with the lease on his purpose- built flat in East Dean. Having bought his property 18 years ago, the length of the lease was of little bearing. Thankfully, he became aware that he would imminently be paying an escalated premium for a lease extension. Finn arranged for a lease extension just in the nick of time in March. Finn and the landlord who owned the flat above in the end settled on the final figure of £6,000 . If he not met the deadline, the amount would have increased by at least £1,050.
Last Spring we were approach by Mr and Mrs. K Baker , who acquired a ground floor apartment in East Dean in February 2007. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative residencies in East Dean with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease expired on 5 September 2098. Considering the 73 years unexpired we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.
In 2013 we were approached by Mr and Mrs. W Stewart who, having bought a first floor flat in East Dean in March 2012. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable properties in East Dean with an extended lease were worth £240,600. The average ground rent payable was £65 invoiced quarterly. The lease ended on 17 October 2087. Given that there were 62 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including legals.