Main reasons to commence your Newhaven lease extension

Why you should start your Newhaven lease extension today:

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

Newhaven leases on residential deteriorating in value. Where your lease has about ninety years left, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' on top of 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 usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain situations you may not be entitled. There are also strict deadlines and procedures to comply with once the process has commenced so it’s best to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Lending institutions may not grant a mortgage with a short lease

Banks and Building Societies have set criteria when lending monies charged on leasehold property. Many will simply not lend at all once the remaining lease term falls lower than a specified unexpired lease term. Many Mortgage lenders will not regard property with an unexpired term of less than 75 years as adequate security. In addition to this being important when selling, it is also relevant if you are wanting to refinance your Newhaven property.

What makes us experts in Newhaven lease extensions?

Lease extensions in Newhaven can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Newhaven lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Newhaven Lease Extension Example Cases:

Harriet, Newhaven, East Sussex,

After protracted correspondence with the landlord of her two bedroom flat in Newhaven, Harriet initiated the lease extension process as the eighty year mark was swiftly approaching. The legal work was concluded in July 2011. The landlord’s costs were negotiated to under five hundred GBP.

Newhaven case:

Ms U Dupont moved into a ground floor apartment in Newhaven in February 2010. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable premises in Newhaven with a long lease were in the region of £280,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease elapsed on 3 August 2105. Given that there were 79 years left we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.

Newhaven case:

In 2013 we were approached by Ms Nicole Scott who, having purchased a one bedroom flat in Newhaven in January 2011. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Comparative premises in Newhaven with a long lease were worth £191,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ended on 16 April 2084. Taking into account 58 years as a residual term we approximated the premium to the landlord to extend the lease to be between £23,800 and £27,400 plus fees.