Why you should start your Newhaven lease extension

Top reasons for lease extension now:

A Newhaven leasehold property depreciates with the years remaining on the lease.

With a domestic leasehold property in Newhaven, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are less than eighty years left. Leasehold owners in Newhaven with a lease approaching 81 years unexpired should seriously consider extending it without delay. When the lease term has fewer than eighty years remaining, under the relevant statute the landlord is entitled to calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies will not issue a mortgage with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet mortgage lenders start to become nervous at around 75 years. This will cause difficulties when you wish to sell or remortgage your flat as it will be effectively unmortgageable. Even though you may not have an imminent plan to sell but when you do your buyer must hold off for a couple of years before they can initiate the legal procedures for an extension to the lease.

Get in touch with one of our Newhaven lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with procure 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 lawyer we work with provide it.

Newhaven Lease Extension Case Studies:

Abigail, Newhaven, East Sussex,

Off the back of unsuccessful discussions with the landlord of her ground floor apartment in Newhaven, Abigail started the lease extension process just as the lease was coming close to the crucial 80-year mark. The transaction completed in March 2008. The landlord’s charges were restricted to below 500 pounds.

Newhaven case:

Dr A Wright bought a basement apartment in Newhaven in May 2011. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical properties in Newhaven with an extended lease were in the region of £200,800. The average amount of ground rent was £65 collected every twelve months. The lease terminated on 10 January 2086. Having 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 exclusive of professional charges.

Newhaven case:

In 2012 we were called by Ms Jodie Cook who, having bought a recently refurbished apartment in Newhaven in November 2009. The question was if we could estimate the premium would be for a 90 year extension to my lease. Comparative premises in Newhaven with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 invoiced yearly. The lease ended on 13 January 2097. Considering the 71 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.