Unfortunately that a Eastbourne residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Eastbourne property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining slips below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Eastbourne will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Eastbourne with more than 100 years left 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
Lucas owned a studio apartment in Eastbourne on the market with a lease of a little over 59 years left. Lucas on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Lucas to invoke his statutory right. Lucas obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Mr and Mrs. T King acquired a one bedroom flat in Eastbourne in February 2001. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Identical premises in Eastbourne with a long lease were worth £200,000. The mid-range ground rent payable was £50 invoiced annually. The lease ended in 2103. Considering the 78 years left we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including expenses.
In 2011 we were contacted by Dr Lewis Laurent who, having moved into a basement apartment in Eastbourne in November 2001. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable properties in Eastbourne with an extended lease were in the region of £267,600. The mid-range ground rent payable was £65 billed annually. The lease lapsed on 5 August 2092. Given that there were 67 years remaining we calculated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 not including legals.