When it comes to domestic leasehold premises in Eastbourne, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Leasehold owners in Eastbourne with a lease approaching 81 years remaining should seriously think of extending it sooner than later. When a lease has under eighty years outstanding, under the current legislation the landlord can calculate and charge a larger premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 |
Lease extensions in Eastbourne can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Eastbourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy negotiations with the landlord of her leasehold flat in Eastbourne, Jordan commenced the lease extension process just as her lease was coming close to the crucial 80-year threshold. The transaction was finalised in September 2014. The freeholder’s charges were restricted to less than 500 pounds.
In 2012 we were phoned by Ms Daisy François who, having moved into a purpose-built apartment in Eastbourne in May 2009. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Comparable homes in Eastbourne with a long lease were valued about £201,200. The mid-range amount of ground rent was £55 billed annually. The lease finished in 2082. Given that there were 56 years as a residual term we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including expenses.
In 2011 we were phoned by Dr Kyle Fournier who, having moved into a garden apartment in Eastbourne in April 2001. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar homes in Eastbourne with a long lease were valued around £300,000. The average amount of ground rent was £50 collected every twelve months. The lease expired in 2102. Taking into account 76 years unexpired we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.