Rottingdean leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Rottingdean residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Rottingdean you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors 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 conveyancer we work with provide it.
In 2014 Oliver, came dangerously close to the 80-year mark with the lease on his first floor apartment in Rottingdean. Having bought his home two decades ago, the length of the lease was of little bearing. Thankfully, he recognised he would imminently be paying way over the odds for a lease extension. Oliver was able to extend his lease just under the wire last June. Oliver and the freeholder eventually settled on sum of £6,000 . If the lease had slipped below eighty years, the sum would have escalated by at least £1,125.
In 2010 we were approached by Ms V Hall who, having acquired a one bedroom apartment in Rottingdean in October 2011. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative residencies in Rottingdean with an extended lease were in the region of £275,000. The mid-range ground rent payable was £45 invoiced annually. The lease ran out in 2094. Having 69 years remaining we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.
Last year we were contacted by Dr V Hill , who purchased a basement flat in Rottingdean in July 2005. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Identical premises in Rottingdean with an extended lease were in the region of £216,000. The average ground rent payable was £60 collected monthly. The lease ended on 3 August 2083. Given that there were 58 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of expenses.