With a domestic leasehold premises in Eastbourne, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years remaining. Residents in Eastbourne with a lease drawing near to 81 years remaining should seriously think of extending it sooner rather than later. When a lease has fewer than eighty years remaining, under the relevant statute the freeholder can calculate and demand a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Eastbourne can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in this area.
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.
In recent months Joshua, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Eastbourne. Having bought his property two decades ago, the length of the lease was of minimal concern. Thankfully, he became aware that he would soon be paying way over the odds for a lease extension. Joshua arranged for a lease extension at the eleventh hour last August. Joshua and the freeholder via the managing agents in the end agreed on the final figure of £6,000 . If the lease had descended below eighty years, the premium would have gone up by a minimum £925.
Mr Joseph Michel owned a studio flat in Eastbourne in February 1996. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Similar flats in Eastbourne with an extended lease were valued around £200,000. The average amount of ground rent was £50 billed yearly. The lease came to a finish on 27 March 2102. Taking into account 77 years remaining we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.
Last Winter we were called by Mrs K Adams , who took over the lease of a ground floor flat in Eastbourne in July 1995. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparative flats in Eastbourne with a long lease were worth £260,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease elapsed on 9 September 2091. Taking into account 66 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 not including expenses.