With a residential leasehold property in Rottingdean, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Anyone in Rottingdean with a lease nearing 81 years remaining should seriously think of extending it sooner rather than later. Once a lease has fewer than eighty years remaining, under the current Act the freeholder is entitled to calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Rottingdean with in excess of 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Lease extensions in Rottingdean can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor 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 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.
Reuben owned a studio apartment in Rottingdean on the market with a lease of fraction over fifty eight years outstanding. Reuben on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the flat.
Mrs Gemma Jackson acquired a garden flat in Rottingdean in September 1998. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Rottingdean with 100 year plus lease were valued around £295,000. The average ground rent payable was £50 collected per annum. The lease end date was in 2100. Given that there were 75 years left we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.
In 2010 we were approached by Dr R Khan who, having completed a basement flat in Rottingdean in November 2002. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Identical premises in Rottingdean with an extended lease were in the region of £250,400. The average ground rent payable was £65 invoiced annually. The lease terminated in 2089. Having 64 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of costs.