East Dean leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying East Dean residential leaseholders to extend the terms of long leases. If you are a leasehold owner in East Dean you really ought to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be worth the same as 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your East Dean leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the landlord of her two bedroom apartment in East Dean, Sophie commenced the lease extension process as the 80 year mark was swiftly coming. The legal work completed in April 2011. The freeholder’s costs were kept to an absolute minimum.
Mrs B Martínez completed a one bedroom apartment in East Dean in April 1996. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical premises in East Dean with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected annually. The lease came to a finish on 6 January 2101. Having 75 years outstanding we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.
Last month we were phoned by Dr N Walker , who completed a one bedroom apartment in East Dean in January 2007. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Comparable homes in East Dean with an extended lease were in the region of £250,400. The mid-range ground rent payable was £65 invoiced yearly. The lease ran out on 4 June 2090. Considering the 64 years unexpired we calculated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 plus expenses.