The re-sale value of a leasehold property in Newhaven depends on how long the lease has left to run. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years to run so that all matters can be concluded well before the 80 year mark. Statute entitles Newhaven qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Newhaven with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Newhaven leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the freeholder of her purpose-built apartment in Newhaven, Abbie commenced the lease extension process just as the lease was nearing the crucial 80-year mark. The lease extension completed in August 2008. The landlord’s costs were negotiated to under five hundred pounds.
Mr L Ricardo purchased a purpose-built apartment in Newhaven in August 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Newhaven with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 collected yearly. The lease expired on 9 May 2097. Considering the 71 years outstanding we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.
Last January we were e-mailed by Ms B Lefebvre , who took over the lease of a one bedroom apartment in Newhaven in January 2000. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative properties in Newhaven with 100 year plus lease were valued around £246,800. The mid-range ground rent payable was £60 invoiced monthly. The lease expired on 11 October 2076. Taking into account 50 years remaining we calculated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 not including costs.