When it comes to residential leasehold property in Newhaven, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are less than eighty years left. Leasehold owners in Newhaven with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has less than 80 years left, under the relevant Act the freeholder is entitled to calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Newhaven,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Newhaven valuers.
Two years ago Aiden, started to get close to the eighty-year threshold with the lease on his first floor apartment in Newhaven. Having purchased his property 18 years ago, the lease term was of no interest. Fortunately, he recognised he needed to take steps soon on Extending the lease. Aiden was able to extend his lease just ahead of time last June. Aiden and the freeholder via the management company in the end agreed on a premium of £6,000 . If he failed to meet the deadline, the premium would have gone up by at least £1,075.
In 2012 we were approached by Mr and Mrs. S Parker who, having moved into a studio apartment in Newhaven in July 2003. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Similar premises in Newhaven with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 billed per annum. The lease came to a finish in 2095. Considering the 70 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
Mr Andrew Leroy bought a recently refurbished flat in Newhaven in September 1997. We are asked if we could estimate the price would likely be for a ninety year lease extension. Similar flats in Newhaven with 100 year plus lease were valued around £246,800. The average ground rent payable was £60 invoiced per annum. The lease ended on 19 April 2075. Given that there were 50 years unexpired we estimated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 not including costs.