Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in East Dean. Inevitably, the length of lease remaining shortens over time. This is often overlooked and only becomes a problem when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in East Dean have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Please give careful consideration before putting off your East Dean lease extension. Putting off that expense now likely increases the price you will eventually incur for a lease extension
Leasehold properties in East Dean with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle East Dean lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last year John, came precariously near to the 80-year threshold with the lease on his studio flat in East Dean. Having purchased his home two decades ago, the lease term was of no bearing. Luckily, he realised he needed to take action soon on Extending the lease. John extended the lease at the eleventh hour last June. John and the freeholder subsequently settled on a premium of £5,500 . If the lease had descended lower than 80 years, the amount would have gone up by at least £975.
Last Autumn we were called by Dr Zoe King , who acquired a purpose-built apartment in East Dean in April 2004. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative flats in East Dean with a long lease were worth £257,800. The mid-range ground rent payable was £65 collected per annum. The lease terminated on 23 September 2090. Considering the 65 years left we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of expenses.
Mr Y Peterson owned a garden apartment in East Dean in May 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative homes in East Dean with 100 year plus lease were in the region of £196,400. The average ground rent payable was £55 billed quarterly. The lease expired in 2079. Given that there were 54 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £35,200 and £40,600 plus expenses.