Rottingdean leases on residential deteriorating in value. Where your lease has approximately ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the current lease dips lower than eighty years - otherwise a higher amount will be payable. Flat owners in Rottingdean will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date 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:
|
| 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. |
Engaging our service will provide you better control over the value of your Rottingdean leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the landlord of her garden flat in Rottingdean, Stephanie commenced the lease extension process as the 80 year deadline was rapidly approaching. The lease extension was finalised in November 2011. The freeholder’s charges were negotiated to a tad over 650 pounds.
Last Summer we were e-mailed by Mr C Rivera , who moved into a studio apartment in Rottingdean in January 2011. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative residencies in Rottingdean with a long lease were in the region of £275,000. The average amount of ground rent was £65 invoiced per annum. The lease end date was in 2094. Given that there were 68 years unexpired we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.
Last January we were phoned by Dr N Clarke , who completed a basement flat in Rottingdean in November 2001. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Identical properties in Rottingdean with an extended lease were worth £208,600. The mid-range ground rent payable was £60 collected quarterly. The lease end date was on 26 November 2083. Having 57 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including professional charges.