Eastbourne leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Eastbourne tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Eastbourne you must see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Eastbourne,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Eastbourne valuers.
Off the back of lengthy correspondence with the freeholder of her one bedroom flat in Eastbourne, Paige commenced the lease extension process just as the lease was nearing the crucial 80-year deadline. The legal work was concluded in August 2007. The freeholder’s charges were negotiated to a tad over 650 GBP.
Ms Grace Walker purchased a one bedroom flat in Eastbourne in July 1999. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Eastbourne with a long lease were in the region of £198,800. The average amount of ground rent was £55 billed annually. The lease came to a finish in 2078. Having 55 years outstanding we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus legals.
In 2013 we were e-mailed by Mr and Mrs. N Miller who, having bought a studio flat in Eastbourne in April 1995. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar premises in Eastbourne with an extended lease were valued around £300,000. The average ground rent payable was £50 invoiced monthly. The lease came to a finish in 2098. Taking into account 75 years remaining we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.