The market value of a leasehold property in Eastbourne depends on how many years the lease has remaining. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be concluded in advance of the eighty year threshold. Current legislation enables Eastbourne qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service gives you increased control over the value of your Eastbourne leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the freeholder of her leasehold apartment in Eastbourne, Gemma started the lease extension process as the 80 year mark was quickly coming. The lease extension was concluded in July 2008. The landlord’s fees were kept to an absolute minimum.
Last Christmas we were phoned by Dr Rosie Girard , who took over the lease of a purpose-built flat in Eastbourne in January 2010. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Comparative properties in Eastbourne with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed quarterly. The lease came to a finish in 2105. Considering the 79 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 not including professional charges.
Mr W Nelson took over the lease of a garden apartment in Eastbourne in October 2008. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative residencies in Eastbourne with 100 year plus lease were in the region of £275,000. The average ground rent payable was £65 collected annually. The lease terminated on 22 July 2094. Considering the 68 years unexpired we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.