There is no doubt about it a leasehold flat or house in Rottingdean is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Rottingdean will meet the qualifying criteria; however a lawyer should be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 conveyancing solicitors that we work with undertake 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 conveyancing solicitor we work with provide it.
During the course of the last few months Owen, came critically near to the eighty-year mark with the lease on his two bedroom apartment in Rottingdean. Having purchased his home two decades ago, the lease term was of no significance. Thankfully, he became aware that he would soon be paying an inflated amount for a lease extension. Owen was able to extend his lease just in the nick of time last June. Owen and the landlord who owned the flat above in the end agreed on the final figure of £5,000 . If the lease had fallen below eighty years, the sum would have gone up by a minimum £1,000.
In 2011 we were approached by Ms Katie Gómez who, having purchased a one bedroom flat in Rottingdean in June 2011. We are asked if we could approximate the price would be to extend the lease by ninety years. Similar homes in Rottingdean with a long lease were worth £208,600. The average amount of ground rent was £60 collected monthly. The lease lapsed on 18 April 2082. Taking into account 57 years outstanding we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 not including expenses.
Mr and Mrs. U Hernández acquired a studio flat in Rottingdean in May 2007. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar homes in Rottingdean with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed annually. The lease terminated in 2102. Having 77 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.