Rottingdean leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Rottingdean enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Rottingdean you would be well advised to investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Rottingdean leaseholder with a lease having around 80 years unexpired should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Lease extensions in Rottingdean can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience procuring Rottingdean lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joseph was the the leasehold proprietor of a conversion apartment in Rottingdean being marketed with a lease of a little over 72 years unexpired. Joseph informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert advice and was able to make a more informed decision and handle with the matter and sell the property.
In 2013 we were approached by Mr and Mrs. E Mason who, having was assigned a lease of a garden flat in Rottingdean in November 1999. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable properties in Rottingdean with an extended lease were valued around £198,800. The average ground rent payable was £55 invoiced every twelve months. The lease ended on 25 September 2081. Considering the 55 years left we estimated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of fees.
In 2011 we were e-mailed by Dr Robyn Young who, having acquired a newly refurbished apartment in Rottingdean in January 1997. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Rottingdean with an extended lease were valued around £300,000. The average amount of ground rent was £50 collected monthly. The lease came to a finish in 2101. Having 75 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.