The market value of a leasehold property in Rottingdean is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be finalised well before the eighty year threshold. Leasehold Reform legislation enables Rottingdean qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Rottingdean,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rottingdean valuers.
Subsequent to unsuccessful correspondence with the landlord of her first floor flat in Rottingdean, Sian started the lease extension process just as her lease was approaching the crucial eighty-year mark. The transaction was finalised in June 2005. The landlord’s costs were kept to an absolute minimum.
Last Christmas we were approach by Mr and Mrs. J Thomas , who purchased a recently refurbished apartment in Rottingdean in July 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Identical properties in Rottingdean with a long lease were valued around £181,600. The mid-range amount of ground rent was £55 invoiced per annum. The lease finished in 2077. Having 52 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of costs.
Last Winter we were contacted by Mr and Mrs. N Gunderson , who owned a recently refurbished flat in Rottingdean in April 1995. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative residencies in Rottingdean with an extended lease were valued about £285,000. The average ground rent payable was £45 invoiced quarterly. The lease expired in 2097. Taking into account 72 years as a residual term we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.