When it comes to long leasehold premises in Newhaven, you are actually buying a right to reside in a property for a set period 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 a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years left. Residents in Newhaven with a lease approaching 81 years remaining should seriously think of extending it without delay. When the lease term has below 80 years remaining, under the relevant Act the landlord can calculate and levy a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Newhaven with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Newhaven lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Trailing protracted discussions with the landlord of her garden flat in Newhaven, Catherine commenced the lease extension process just as her lease was nearing the all-important eighty-year threshold. The transaction was concluded in April 2015. The freeholder’s costs were restricted to slightly above 650 pounds.
Mr and Mrs. V Williams completed a basement flat in Newhaven in May 2012. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Comparative flats in Newhaven with a long lease were worth £176,200. The average amount of ground rent was £65 collected yearly. The lease ran out on 21 March 2081. Having 56 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 not including professional charges.
In 2012 we were approached by Dr Hannah Dupont who, having bought a ground floor flat in Newhaven in November 2007. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical flats in Newhaven with a long lease were valued about £237,600. The average amount of ground rent was £45 billed quarterly. The lease elapsed on 21 October 2092. Taking into account 67 years remaining we calculated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus legals.