The closer a domestic lease in Eastbourne gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than one hundred years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner than later. The majority of flat owners in Eastbourne will qualify for this right; however a conveyancer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Eastbourne with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Eastbourne,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Eastbourne valuers.
Finley was the the leasehold proprietor of a 2 bedroom apartment in Eastbourne being marketed with a lease of just over fifty eight years unexpired. Finley informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finley to invoke his statutory right. Finley procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last Winter we were phoned by Mr and Mrs. S Hill , who was assigned a lease of a garden flat in Eastbourne in March 2007. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Identical residencies in Eastbourne with an extended lease were in the region of £210,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease concluded on 24 November 2104. Having 79 years outstanding we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.
Dr Lucy Sharif acquired a ground floor flat in Eastbourne in February 2012. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Identical flats in Eastbourne with a long lease were valued about £275,000. The average amount of ground rent was £45 billed every twelve months. The lease expired on 6 November 2094. Having 69 years remaining we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.