As the the remaining lease term of a Newhaven residential lease diminished so does its value and therefore the value of your property. If the lease has, beyond one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. Many flat owners in Newhaven will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a freeholder in Newhaven,the lease extension lawyers 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.
Half a year ago Lewis, came dangerously near to the 80-year mark with the lease on his leasehold flat in Newhaven. In buying his property twenty years ago, the lease term was of little interest. by good luck, he realised he would soon be paying an escalated premium for Extending the lease. Lewis extended the lease at the eleventh hour in June. Lewis and the freeholder via the management company subsequently settled on an amount of £6,000 . If the lease had dipped to less than 80 years, the sum would have escalated by a minimum £1,075.
Last Christmas we were e-mailed by Ms H Allen , who moved into a one bedroom flat in Newhaven in January 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Similar properties in Newhaven with an extended lease were valued about £235,200. The average amount of ground rent was £45 invoiced yearly. The lease lapsed on 7 July 2092. Considering the 66 years outstanding we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.
Last Winter we were e-mailed by Mr N Davis , who bought a one bedroom flat in Newhaven in July 1995. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical premises in Newhaven with a long lease were in the region of £280,000. The average amount of ground rent was £55 invoiced every twelve months. The lease elapsed in 2103. Having 77 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including professional charges.