Rottingdean leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Rottingdean enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Rottingdean you must check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
Lender | Requirement |
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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. |
Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
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. |
Halifax | Minimum 70 years from the date of the mortgage. |
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Engaging our service gives you enhanced control over the value of your Rottingdean leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the freeholder of her garden flat in Rottingdean, Ella commenced the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The lease extension was concluded in October 2007. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were e-mailed by Dr P Lefèvre who, having bought a garden apartment in Rottingdean in May 1995. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparative residencies in Rottingdean with 100 year plus lease were in the region of £260,200. The average amount of ground rent was £65 collected every twelve months. The lease came to a finish in 2090. Considering the 66 years unexpired we calculated the premium to the landlord for the lease extension to be within £16,200 and £18,600 plus fees.
Mr and Mrs. J Morgan moved into a recently refurbished flat in Rottingdean in January 2003. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Comparable residencies in Rottingdean with 100 year plus lease were in the region of £198,800. The mid-range amount of ground rent was £55 invoiced yearly. The lease came to a finish on 8 January 2079. Considering the 55 years remaining we approximated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of legals.