It’s an underpublicised certainty that a Rottingdean residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Rottingdean property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Rottingdean will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Nationwide Building Society | |
| TSB | |
| Royal Bank of Scotland | |
| Virgin |
Retaining our service will provide you enhanced control over the value of your Rottingdean leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the freeholder of her basement flat in Rottingdean, Sophia initiated the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The lease extension was finalised in October 2008. The freeholder’s costs were restricted to approximately 700 pounds.
Mr and Mrs. Y Rogers bought a garden apartment in Rottingdean in August 2000. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Identical flats in Rottingdean with a long lease were in the region of £300,000. The average ground rent payable was £50 invoiced every twelve months. The lease ran out in 2101. Having 75 years unexpired we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.
Ms Y Brown moved into a ground floor flat in Rottingdean in August 2005. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Rottingdean with 100 year plus lease were in the region of £250,400. The average amount of ground rent was £65 billed monthly. The lease expired on 1 July 2090. Taking into account 64 years as a residual term we approximated the premium to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of professional charges.