The value of Rottingdean leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the remaining term is below than 80 years
Leasehold residencies in Rottingdean with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 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 want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the freeholder of her first floor flat in Rottingdean, Holly started the lease extension process as the eighty year deadline was rapidly nearing. The lease extension was finalised in January 2006. The freeholder’s charges were negotiated to less than 600 pounds.
Mr and Mrs. S Moore was assigned a lease of a basement apartment in Rottingdean in June 2004. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical properties in Rottingdean with an extended lease were worth £191,400. The average ground rent payable was £55 billed monthly. The lease terminated in 2079. Taking into account 54 years remaining we estimated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 exclusive of expenses.
Last year we were contacted by Dr Owen Phillips , who bought a one bedroom apartment in Rottingdean in September 2008. The question was if we could approximate the premium would be to prolong the lease by ninety years. Similar residencies in Rottingdean with an extended lease were valued around £295,000. The mid-range amount of ground rent was £45 collected per annum. The lease elapsed on 8 November 2099. Taking into account 74 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.