As the the remaining lease term of a Eastbourne domestic lease lessens so does its value and therefore the value of your property. Where the lease has, beyond one hundred years remaining then this decrease may be of little impact however there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Many flat owners in Eastbourne will qualify for this right; however a conveyancer can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Eastbourne with in excess of one hundred years outstanding 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 upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Using our service will provide you increased control over the value of your Eastbourne leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of lengthy negotiations with the freeholder of her studio flat in Eastbourne, Rebecca commenced the lease extension process just as the lease was nearing the critical eighty-year mark. The lease extension completed in November 2015. The freeholder’s charges were restricted to less than 600 GBP.
Mr and Mrs. N Torres acquired a purpose-built flat in Eastbourne in March 2002. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable residencies in Eastbourne with a long lease were valued around £285,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease finished on 25 January 2098. Having 72 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
In 2009 we were called by Mr and Mrs. B Ramírez who, having was assigned a lease of a basement flat in Eastbourne in May 2004. The question was if we could estimate the price would likely be to extend the lease by an additional years. Identical homes in Eastbourne with an extended lease were in the region of £233,200. The mid-range ground rent payable was £60 billed annually. The lease ran out in 2087. Having 61 years remaining we calculated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 plus costs.