The value of Eastbourne leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is less than 80 years
Leasehold residencies in Eastbourne with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
The conveyancing solicitors that we work with undertake Eastbourne 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.
14 months ago Archie, started to get near to the eighty-year threshold with the lease on his ground floor flat in Eastbourne. Having purchased his home two decades ago, the lease term was of no concern. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Archie arranged for a lease extension just under the wire in June. Archie and the landlord ultimately agreed on an amount of £5,000 . If he not met the deadline, the premium would have escalated by at least £1,025.
Dr Kate Smith took over the lease of a first floor flat in Eastbourne in May 2010. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Eastbourne with 100 year plus lease were worth £275,000. The average ground rent payable was £45 billed quarterly. The lease terminated in 2095. Given that there were 69 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.
Mr O Parker acquired a one bedroom flat in Eastbourne in November 2005. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Eastbourne with an extended lease were worth £216,000. The average ground rent payable was £60 collected per annum. The lease end date was on 5 August 2084. Having 58 years outstanding we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including expenses.