It’s a harsh truth that a Saltdean residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Saltdean property prices.Once your lease nears 85ish years, you should start considering a lease extension. If lease term slips below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Saltdean will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold properties in Saltdean with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Saltdean can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer 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 dealing with Saltdean lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leon owned a studio flat in Saltdean on the market with a lease of a few days over fifty eight years outstanding. Leon on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leon to invoke his statutory right. Leon procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last Autumn we were called by Mr and Mrs. T Wilson , who moved into a garden apartment in Saltdean in July 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Comparable properties in Saltdean with 100 year plus lease were in the region of £267,600. The mid-range amount of ground rent was £65 billed yearly. The lease elapsed in 2093. Having 67 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 not including fees.
In 2013 we were e-mailed by Dr S Wilson who, having completed a purpose-built apartment in Saltdean in April 1995. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar residencies in Saltdean with a long lease were worth £206,200. The mid-range ground rent payable was £55 billed per annum. The lease ended on 11 October 2082. Having 56 years left we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including costs.