The market 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 significantly once the unexpired lease term is less than eighty years
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Halifax | |
| National Westminster Bank | |
| Santander | |
| TSB |
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.
Kyle owned a 2 bedroom apartment in Rottingdean on the market with a lease of a little over 59 years outstanding. Kyle on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Kyle to invoke his statutory right. Kyle obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. K Lefèvre took over the lease of a studio flat in Rottingdean in January 2005. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Similar residencies in Rottingdean with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease concluded in 2097. Given that there were 71 years left we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.
Last Christmas we were approach by Mr Caleb Mitchell , who bought a one bedroom apartment in Rottingdean in April 2000. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparable premises in Rottingdean with an extended lease were valued about £225,800. The average ground rent payable was £60 billed every twelve months. The lease elapsed on 12 November 2086. Given that there were 60 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of professional charges.