On the balance of probabilities where you own a flat in Newhaven you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle 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 conveyancer we work with provide it.
Ollie was the the leasehold proprietor of a high value apartment in Newhaven on the market with a lease of fraction over sixty years outstanding. Ollie informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. 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 increase every twenty five years thereafter. No ground rent would be due on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.
Mr Finley Rodríguez took over the lease of a one bedroom flat in Newhaven in September 2002. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Identical properties in Newhaven with an extended lease were in the region of £254,200. The average amount of ground rent was £60 invoiced every twelve months. The lease ended in 2076. Taking into account 51 years unexpired we approximated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of costs.
In 2012 we were phoned by Dr Holly Martin who, having owned a basement flat in Newhaven in November 1995. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable residencies in Newhaven with 100 year plus lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected per annum. The lease elapsed on 6 January 2087. Considering the 62 years unexpired we calculated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 not including legals.