The market value of Newhaven leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is less than eighty years
It is generally considered that a property with more than 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 ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Newhaven,the lease extension experts that we work with will always be willing 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.
In recent months Omar, started to get near to the eighty-year threshold with the lease on his studio apartment in Newhaven. In buying his property two decades ago, the length of the lease was of minimal bearing. Luckily, he recognised he needed to take action soon on a lease extension. Omar arranged for a lease extension at the eleventh hour last September. Omar and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If the lease had gone below eighty years, the premium would have gone up by at least £1,075.
Last month we were e-mailed by Mr O Davies , who purchased a recently refurbished apartment in Newhaven in March 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Newhaven with a long lease were worth £235,200. The average amount of ground rent was £45 billed monthly. The lease finished in 2091. Having 66 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.
Dr Alexander Gray moved into a one bedroom apartment in Newhaven in June 2009. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Similar residencies in Newhaven with a long lease were in the region of £275,000. The average amount of ground rent was £55 billed annually. The lease came to a finish on 27 June 2102. Considering the 77 years as a residual term we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.