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 expense of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
Leasehold premises in Rottingdean with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Caleb was the the leasehold proprietor of a high value flat in Rottingdean on the market with a lease of a little over sixty years outstanding. Caleb informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Caleb to exercise his statutory right. Caleb procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2012 we were e-mailed by Mr and Mrs. L Evans who, having owned a studio flat in Rottingdean in August 2012. We are asked if we could approximate the price could be to extend the lease by an additional years. Comparable homes in Rottingdean with 100 year plus lease were worth £216,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease terminated in 2084. Considering the 58 years left we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of legals.
Mr Benjamin André completed a garden apartment in Rottingdean in January 1995. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparable residencies in Rottingdean with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 collected per annum. The lease expiry date was in 2104. Taking into account 78 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.