As the length of the unexpired term of a East Dean residential lease diminished so does its value and therefore the value of your property. If the lease has, in excess of 99 years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Most flat owners in East Dean will meet the qualifying criteria; nevertheless a lawyer will be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
The lawyers that we work with procure East Dean lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last October Nathan, started to get near to the 80-year threshold with the lease on his ground floor apartment in East Dean. In buying his property 18 years previously, the unexpired term was of no significance. As luck would have it, he noticed he needed to take action soon on Extending the lease. Nathan extended the lease at the eleventh hour last June. Nathan and the freeholder eventually settled on sum of £5,500 . If the lease had descended below eighty years, the amount would have escalated by at least £1,125.
Mr and Mrs. B Allen acquired a garden apartment in East Dean in January 2010. We are asked if we could approximate the price would be to prolong the lease by an additional years. Similar premises in East Dean with a long lease were in the region of £181,600. The average ground rent payable was £55 billed annually. The lease terminated on 8 November 2077. Having 52 years left we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of costs.
Last month we were e-mailed by Mr Eli Laurent , who bought a purpose-built apartment in East Dean in May 1997. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative residencies in East Dean with a long lease were in the region of £290,000. The average amount of ground rent was £45 invoiced per annum. The lease terminated on 26 August 2097. Taking into account 72 years left we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 plus fees.