On the balance of probabilities if you own a flat in Newhaven you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you increased control over the value of your Newhaven leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Aiden, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Newhaven. In buying his flat two decades ago, the lease term was of little significance. As luck would have it, he recognised he would imminently be paying way over the odds for Extending the lease. Aiden arranged for a lease extension just under the wire in March. Aiden and the landlord ultimately agreed on a premium of £5,500 . If the lease had slipped below 80 years, the premium would have escalated by a minimum £1,075.
In 2009 we were called by Dr Robyn Morris who, having was assigned a lease of a first floor apartment in Newhaven in February 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative homes in Newhaven with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced annually. The lease concluded in 2097. Considering the 72 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
In 2013 we were e-mailed by Ms L Rose who, having completed a newly refurbished flat in Newhaven in September 2010. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Comparable properties in Newhaven with a long lease were in the region of £256,600. The average amount of ground rent was £60 billed monthly. The lease concluded on 11 January 2077. Given that there were 52 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £41,800 and £48,400 plus expenses.