It’s an underpublicised certainty that a Rottingdean residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Rottingdean property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. The majority of flat owners in Rottingdean will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Skipton Building Society | |
| Virgin |
Lease extensions in Rottingdean can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Rottingdean lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Oliver owned a high value flat in Rottingdean on the market with a lease of a few days over 61 years left. Oliver informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Oliver to exercise his statutory right. Oliver procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last year we were e-mailed by Mr O Young , who owned a purpose-built flat in Rottingdean in November 1995. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative residencies in Rottingdean with an extended lease were in the region of £225,800. The mid-range ground rent payable was £60 collected per annum. The lease termination date was on 22 November 2086. Considering the 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of costs.
In 2011 we were called by Ms Rachel Cooper who, having moved into a recently refurbished apartment in Rottingdean in October 2008. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Similar residencies in Rottingdean with an extended lease were in the region of £210,000. The mid-range ground rent payable was £50 billed per annum. The lease ended on 18 February 2106. Taking into account 80 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.