Unfortunately that a Rottingdean residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Rottingdean property prices.Once your lease nears 85ish years, 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 slips lower than eighty years - otherwise a higher amount will be payable. Most leasehold owners in Rottingdean will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations 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 conveyancer throughout the formalities.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Rottingdean can be a difficult process. We recommend you procure professional help from a lawyer 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 a wealth of experience 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.
Last year Blake, started to get near to the 80-year mark with the lease on his one bedroom apartment in Rottingdean. Having purchased his home two decades ago, the lease term was of little interest. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Blake was able to extend his lease just under the wire in June. Blake and the freeholder in the end settled on an amount of £5,500 . If the lease had slipped to less than eighty years, the figure would have increased by at least £1,050.
Last March we were called by Mrs Bethan Bennett , who owned a garden apartment in Rottingdean in October 2010. The dilemma was if we could estimate the price would likely be to extend the lease by an additional years. Comparative premises in Rottingdean with an extended lease were worth £174,200. The average ground rent payable was £55 billed quarterly. The lease expired on 13 February 2075. Having 51 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of expenses.
In 2013 we were approached by Mrs Mollie Garcia who, having acquired a one bedroom apartment in Rottingdean in August 2006. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical homes in Rottingdean with 100 year plus lease were worth £285,000. The average ground rent payable was £45 collected quarterly. The lease expired on 1 March 2095. Taking into account 71 years unexpired we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.