When it comes to residential leasehold premises in Eastbourne, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than 80 years remaining. Leasehold owners in Eastbourne with a lease approaching 81 years remaining should seriously consider extending it without delay. When a lease has under 80 years left, under the current statute the landlord is entitled to calculate and levy a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Eastbourne with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Eastbourne leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Oscar, came critically near to the eighty-year mark with the lease on his leasehold apartment in Eastbourne. Having purchased his property twenty years ago, the lease term was of minimal concern. Luckily, he realised he would soon be paying an escalated premium for Extending the lease. Oscar extended the lease at the eleventh hour in August. Oscar and the freeholder in the end agreed on the final figure of £6,000 . If the lease had gone below 80 years, the amount would have escalated by a minimum £1,025.
Last month we were called by Mr and Mrs. A Howard , who purchased a newly refurbished apartment in Eastbourne in November 2006. We are asked if we could approximate the premium could be to extend the lease by an additional years. Identical flats in Eastbourne with a long lease were worth £290,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease finished in 2099. Having 73 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.
Dr Lewis Martinez acquired a one bedroom flat in Eastbourne in March 2010. The dilemma was if we could estimate the premium would likely be to extend the lease by an additional years. Comparable residencies in Eastbourne with 100 year plus lease were valued about £235,600. The mid-range ground rent payable was £60 collected monthly. The lease expired in 2088. Taking into account 62 years remaining we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus professional charges.