The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in East Dean may extend the lease for an additional 90 years under statute. Do give careful consideration before delaying your East Dean lease extension. Putting off that expense today simply escalates the premium you will eventually be required to pay for a lease extension.
Leasehold properties in East Dean with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in East Dean can be a difficult process. We recommend you procure 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 East Dean lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Rory, started to get close to the 80-year mark with the lease on his basement apartment in East Dean. Having bought his property two decades ago, the unexpired term was of little bearing. As luck would have it, he became aware that he needed to take action soon on a lease extension. Rory arranged for a lease extension just in the nick of time in January. Rory and the landlord ultimately settled on the final figure of £5,000 . If he not met the deadline, the amount would have increased by a minimum £1,150.
Last January we were e-mailed by Mr and Mrs. D Bailey , who purchased a ground floor flat in East Dean in March 2003. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative premises in East Dean with a long lease were valued about £248,000. The mid-range ground rent payable was £65 collected quarterly. The lease terminated in 2088. Given that there were 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including expenses.
Dr Gabriel Vincent purchased a recently refurbished apartment in East Dean in May 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Comparable flats in East Dean with an extended lease were worth £181,600. The average ground rent payable was £55 invoiced annually. The lease terminated on 10 November 2077. Taking into account 52 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus professional charges.