The market value of a leasehold property in Eastbourne is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that formalities can be concluded prior to the eighty year threshold. Leasehold Reform legislation entitles Eastbourne qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Eastbourne can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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.
Leo was the the leasehold owner of a high value apartment in Eastbourne on the market with a lease of a few days over sixty years unexpired. Leo informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Leo to exercise his statutory right. Leo obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
Mr and Mrs. T Thompson moved into a first floor flat in Eastbourne in February 2012. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Similar flats in Eastbourne with a long lease were in the region of £240,600. The mid-range ground rent payable was £65 invoiced monthly. The lease finished on 19 March 2086. Given that there were 62 years left we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including costs.
In 2009 we were approached by Dr S Brooks who, having bought a first floor apartment in Eastbourne in August 2002. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical premises in Eastbourne with 100 year plus lease were worth £179,200. The mid-range ground rent payable was £55 collected monthly. The lease termination date was in 2075. Taking into account 51 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.