It’s a harsh certainty that a Rottingdean residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Rottingdean property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term falls below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Rottingdean will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold residencies in Rottingdean with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Rottingdean can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Rottingdean lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Edward owned a conversion flat in Rottingdean being sold with a lease of a little over 72 years unexpired. Edward on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Edward to exercise his statutory right. Edward procured expert advice and secured satisfactory deal without resorting to tribunal and sell the property.
In 2011 we were contacted by Dr Aaron Rivera who, having bought a newly refurbished apartment in Rottingdean in June 2002. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable properties in Rottingdean with an extended lease were valued about £290,000. The mid-range ground rent payable was £45 collected every twelve months. The lease ran out on 18 March 2098. Given that there were 72 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.
Last Spring we were approach by Mrs Morgan Lee , who acquired a one bedroom flat in Rottingdean in October 2006. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative premises in Rottingdean with an extended lease were worth £233,200. The average amount of ground rent was £60 billed every twelve months. The lease termination date was on 22 May 2087. Having 61 years left we calculated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 plus costs.