Newhaven leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Newhaven will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some circumstances you may not qualify. There are prescribed timetables and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the same 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.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Halifax |
The conveyancing solicitors that we work with handle 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.
Last October Arthur, started to get close to the 80-year mark with the lease on his first floor apartment in Newhaven. Having bought his property two decades ago, the length of the lease was of no interest. by good luck, he realised he would imminently be paying way over the odds for Extending the lease. Arthur was able to extend his lease at the eleventh hour in September. Arthur and the landlord eventually agreed on an amount of £6,000 . If the lease had slipped to less than 80 years, the premium would have increased by a minimum £1,000.
In 2009 we were phoned by Dr Aimee Gómez who, having took over the lease of a basement flat in Newhaven in October 2012. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparable homes in Newhaven with a long lease were in the region of £245,000. The average ground rent payable was £45 billed yearly. The lease finished in 2094. Taking into account 68 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
Last Winter we were called by Dr N Hall , who owned a ground floor flat in Newhaven in June 2002. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Similar homes in Newhaven with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 billed per annum. The lease ended on 10 July 2105. Having 79 years remaining we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.