There is no doubt about it a leasehold flat or house in Rottingdean is a wasting asset as a result of the shortening lease. Where the lease has, more than 100 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner as opposed to later. Many flat owners in Rottingdean will meet the qualifying criteria; that being said a lawyer will be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Rottingdean with over 100 years outstanding 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
The lawyers that we work with undertake Rottingdean 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 conveyancing solicitor we work with provide it.
Following lengthy negotiations with the freeholder of her ground floor apartment in Rottingdean, Ellie started the lease extension process as the eighty year deadline was rapidly approaching. The transaction was finalised in February 2008. The landlord’s costs were restricted to a tad over 500 GBP.
In 2012 we were contacted by Dr B Thompson who, having acquired a first floor flat in Rottingdean in May 1998. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Rottingdean with a long lease were worth £295,000. The mid-range ground rent payable was £45 billed every twelve months. The lease came to a finish in 2100. Considering the 74 years outstanding we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.
Dr Jamie Rivera bought a basement apartment in Rottingdean in November 1999. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Identical flats in Rottingdean with 100 year plus lease were in the region of £243,000. The mid-range amount of ground rent was £65 billed annually. The lease expired on 2 September 2089. Given that there were 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 not including costs.