Rottingdean leases on residential properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Rottingdean will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are prescribed timetables and steps to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Rottingdean with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Engaging our service will provide you better control over the value of your Rottingdean leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
John owned a high value flat in Rottingdean being sold with a lease of fraction over 59 years outstanding. John on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were John to invoke his statutory right. John obtained expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2012 we were phoned by Mrs I Lefebvre who, having purchased a one bedroom flat in Rottingdean in February 2007. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparative residencies in Rottingdean with an extended lease were worth £189,000. The average amount of ground rent was £55 billed per annum. The lease lapsed in 2078. Having 53 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.
In 2012 we were contacted by Mr Milo Bonnet who, having bought a one bedroom apartment in Rottingdean in August 2001. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparable properties in Rottingdean with a long lease were valued around £290,000. The average ground rent payable was £45 billed monthly. The lease lapsed in 2098. Considering the 73 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.