The value of Rottingdean leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is less than 80 years
Leasehold properties in Rottingdean with over 100 years unexpired 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| 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. |
The conveyancers that we work with handle Rottingdean lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Off the back of protracted negotiations with the freeholder of her garden flat in Rottingdean, Jordan started the lease extension process just as the lease was coming close to the critical 80-year deadline. The lease extension was finalised in May 2009. The freeholder’s costs were restricted to about 700 pounds.
Mrs Aimee Kelly acquired a one bedroom apartment in Rottingdean in July 2012. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Comparative properties in Rottingdean with an extended lease were in the region of £275,000. The mid-range ground rent payable was £45 billed yearly. The lease termination date was on 9 March 2093. Given that there were 69 years remaining we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.
Last March we were phoned by Mr and Mrs. F Lefebvre , who acquired a ground floor apartment in Rottingdean in September 2002. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparative properties in Rottingdean with an extended lease were worth £216,000. The average ground rent payable was £60 invoiced annually. The lease lapsed on 4 November 2082. Taking into account 58 years unexpired we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.