Eastbourne leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Eastbourne will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some cases you may not qualify. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold properties in Eastbourne with more than one hundred years remaining on the lease are sometimes referred to as ‘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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
Engaging our service will provide you enhanced control over the value of your Eastbourne leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jayden was the the leasehold proprietor of a conversion flat in Eastbourne on the market with a lease of just over 59 years left. Jayden on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jayden to invoke his statutory right. Jayden obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.
In 2014 we were approached by Mr Connor Reed who, having owned a basement apartment in Eastbourne in May 1998. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparative premises in Eastbourne with an extended lease were worth £280,000. The average ground rent payable was £45 collected yearly. The lease expired in 2095. Having 70 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.
Last Winter we were phoned by Dr Naomi Morris , who was assigned a lease of a basement apartment in Eastbourne in February 2009. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Eastbourne with 100 year plus lease were worth £218,400. The average amount of ground rent was £60 invoiced quarterly. The lease elapsed on 28 January 2084. Taking into account 59 years unexpired we approximated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 not including fees.