Chances are that where you own a flat in Rottingdean you actually own a long leasehold interest over your property
Leasehold premises in Rottingdean with more than one hundred years left 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 freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Rottingdean leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Ali owned a high value flat in Rottingdean on the market with a lease of fraction over sixty years left. Ali informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Ali to exercise his statutory right. Ali obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Summer we were phoned by Mr and Mrs. P Khan , who was assigned a lease of a first floor flat in Rottingdean in August 2010. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical homes in Rottingdean with 100 year plus lease were valued about £200,000. The mid-range amount of ground rent was £50 invoiced annually. The lease expired in 2102. Having 77 years as a residual term we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
Dr Andrew González owned a purpose-built apartment in Rottingdean in September 1997. The question was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Similar flats in Rottingdean with an extended lease were valued around £260,200. The mid-range ground rent payable was £65 collected every twelve months. The lease expired on 1 November 2091. Given that there were 66 years outstanding we calculated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of expenses.