Newhaven leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Newhaven enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Newhaven you really ought to investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Newhaven leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is put in place without delay
Leasehold residencies in Newhaven with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Newhaven,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Newhaven valuers.
Edward was the the leasehold proprietor of a 2 bedroom flat in Newhaven on the market with a lease of fraction over sixty years unexpired. Edward informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Edward to exercise his statutory right. Edward obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2012 we were phoned by Dr M Clarke who, having acquired a ground floor flat in Newhaven in March 1996. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Similar properties in Newhaven with 100 year plus lease were valued about £210,600. The average ground rent payable was £45 collected annually. The lease ran out in 2087. Considering the 62 years outstanding we approximated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 plus expenses.
In 2012 we were contacted by Dr D Moore who, having acquired a one bedroom apartment in Newhaven in April 2004. The question was if we could approximate the price would likely be to prolong the lease by ninety years. Similar flats in Newhaven with a long lease were in the region of £260,000. The mid-range amount of ground rent was £50 billed quarterly. The lease came to a finish on 27 May 2098. Having 73 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.