Unfortunately that a Newhaven residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Newhaven property prices.Once your lease nears 85ish years, you should start thinking about 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 dips under 80 years - otherwise a higher amount will be payable. Most flat owners in Newhaven will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| Nationwide Building Society |
The conveyancers that we work with undertake Newhaven lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Two years ago Tommy, came perilously near to the eighty-year mark with the lease on his ground floor flat in Newhaven. Having purchased his home twenty years previously, the lease term was of minimal importance. by good luck, he recognised he would imminently be paying way over the odds for Extending the lease. Tommy extended the lease just under the wire last June. Tommy and the freeholder subsequently agreed on a premium of £5,500 . If the lease had slipped to less than eighty years, the price would have increased by at least £925.
Mr and Mrs. L Norbert bought a ground floor flat in Newhaven in May 2012. The question was if we could estimate the price could be for a 90 year lease extension. Similar residencies in Newhaven with an extended lease were valued about £220,400. The mid-range amount of ground rent was £45 billed every twelve months. The lease ran out on 3 November 2090. Considering the 64 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of fees.
Last Autumn we were phoned by Mr and Mrs. N Phillips , who completed a purpose-built apartment in Newhaven in August 1996. The dilemma was if we could estimate the price would likely be to extend the lease by 90 years. Comparative residencies in Newhaven with 100 year plus lease were worth £270,000. The mid-range ground rent payable was £55 collected every twelve months. The lease ran out in 2101. Given that there were 75 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.