With a domestic leasehold property in Eastbourne, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Leasehold owners in Eastbourne with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once the lease term has fewer than 80 years left, under the current Act the landlord is entitled to calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 get professional help from a conveyancer and valuer 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 dealing with Eastbourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Oscar owned a 2 bedroom apartment in Eastbourne being marketed with a lease of just over sixty years remaining. Oscar on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Last Summer we were contacted by Mr and Mrs. S Flores , who purchased a one bedroom apartment in Eastbourne in January 2002. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical premises in Eastbourne with an extended lease were in the region of £235,600. The average ground rent payable was £60 invoiced quarterly. The lease end date was in 2087. Having 62 years remaining we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of costs.
In 2011 we were phoned by Mr Finn Smith who, having took over the lease of a one bedroom apartment in Eastbourne in February 1998. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Similar properties in Eastbourne with a long lease were worth £174,200. The average ground rent payable was £55 billed quarterly. The lease expiry date was in 2076. Given that there were 51 years left we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus legals.