The nearer a residential lease in Rottingdean gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, more than 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Rottingdean will qualify for this right; however a conveyancing solicitor can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Rottingdean with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 gives you enhanced 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 have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Owen owned a high value apartment in Rottingdean being sold with a lease of a few days over 59 years outstanding. Owen on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Owen to invoke his statutory right. Owen procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
In 2012 we were e-mailed by Mr and Mrs. Y Khan who, having bought a studio apartment in Rottingdean in July 2008. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Identical flats in Rottingdean with 100 year plus lease were valued about £285,000. The average amount of ground rent was £45 collected every twelve months. The lease elapsed in 2097. Given that there were 72 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
In 2009 we were called by Dr K Rodríguez who, having acquired a ground floor apartment in Rottingdean in July 2003. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative properties in Rottingdean with 100 year plus lease were in the region of £233,200. The mid-range ground rent payable was £60 collected monthly. The lease ran out on 7 November 2086. Given that there were 61 years left we calculated the premium to the landlord to extend the lease to be within £22,800 and £26,400 plus expenses.