There is no doubt about it a leasehold property in Eastbourne is a wasting asset as a result of the diminishing lease term. If the residual term has, over 100 years remaining then this decrease may be negligible however there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Eastbourne will meet the qualifying criteria; however a conveyancer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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; |
| Lloyds TSB Scotland | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Eastbourne,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Eastbourne valuers.
Last Spring Jasper, came precariously close to the eighty-year threshold with the lease on his ground floor flat in Eastbourne. In buying his home 19 years ago, the length of the lease was of no relevance. by good luck, he realised he would imminently be paying an inflated amount for Extending the lease. Jasper was able to extend his lease just in the nick of time last July. Jasper and the freeholder via the management company in the end settled on an amount of £6,000 . If he had missed the deadline, the figure would have gone up by a minimum £950.
Ms Jennifer Martínez purchased a basement apartment in Eastbourne in September 1995. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar flats in Eastbourne with a long lease were valued about £184,000. The average amount of ground rent was £55 invoiced per annum. The lease expired in 2078. Taking into account 53 years outstanding we approximated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of legals.
Last Summer we were phoned by Ms Catherine Morris , who took over the lease of a one bedroom apartment in Eastbourne in September 1999. We are asked if we could approximate the premium could be to extend the lease by an additional years. Comparable residencies in Eastbourne with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 collected quarterly. The lease elapsed on 11 July 2098. Considering the 73 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.