As the the remaining lease term of a Eastbourne residential lease decreases so does its value and therefore the value of your property. If the lease has, beyond 125 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner rather than later. The majority of flat owners in Eastbourne will qualify for this right; that being said a conveyancer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Eastbourne with in excess of one hundred years remaining on the lease are often 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 upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Eastbourne can be a difficult process. We recommend you procure guidance from a lawyer and surveyor 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 in-depth market knowledge procuring Eastbourne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Edward, came critically close to the 80-year threshold with the lease on his garden flat in Eastbourne. In buying his home twenty years ago, the length of the lease was of minimal importance. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Edward was able to extend his lease just under the wire last September. Edward and the landlord eventually agreed on a premium of £5,500 . If the lease had gone below 80 years, the figure would have become more exhorbitant by at least £900.
Last year we were e-mailed by Mr and Mrs. B Brown , who acquired a ground floor flat in Eastbourne in July 2011. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Similar homes in Eastbourne with an extended lease were valued about £248,000. The mid-range amount of ground rent was £65 billed monthly. The lease ran out on 19 July 2088. Given that there were 63 years remaining we approximated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus fees.
Mr Luke Cooper owned a one bedroom apartment in Eastbourne in February 2008. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparative premises in Eastbourne with 100 year plus lease were worth £184,000. The average ground rent payable was £55 collected every twelve months. The lease expired on 5 May 2078. Taking into account 53 years unexpired we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including legals.