With a long leasehold premises in Newhaven, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are fewer than 80 years left. Anyone in Newhaven with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When a lease has below 80 years remaining, under the current Act the landlord can calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Leeds Building Society | |
| National Westminster Bank |
Engaging our service will provide you enhanced control over the value of your Newhaven leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Michael was the the leasehold proprietor of a high value apartment in Newhaven being marketed with a lease of just over 61 years remaining. Michael informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Michael to invoke his statutory right. Michael procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Dr L Phillips took over the lease of a purpose-built flat in Newhaven in September 1998. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative properties in Newhaven with an extended lease were in the region of £256,600. The average amount of ground rent was £60 collected yearly. The lease finished on 7 May 2078. Considering the 52 years unexpired we calculated the compensation to the landlord to extend the lease to be between £41,800 and £48,400 exclusive of costs.
In 2010 we were e-mailed by Dr T Simon who, having owned a one bedroom apartment in Newhaven in February 1998. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Identical residencies in Newhaven with 100 year plus lease were worth £215,600. The mid-range ground rent payable was £45 billed monthly. The lease ended on 26 May 2088. Given that there were 62 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of expenses.