Newhaven leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Newhaven will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not be entitled. There are also strict deadlines and procedures to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Newhaven can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Newhaven lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the landlord of her leasehold flat in Newhaven, Megan initiated the lease extension process as the 80 year deadline was rapidly coming. The legal work completed in April 2011. The freeholder’s costs were kept to an absolute minimum.
Last month we were e-mailed by Mr and Mrs. S Dupont , who acquired a one bedroom flat in Newhaven in May 2005. The question was if we could estimate the premium would likely be to prolong the lease by ninety years. Similar flats in Newhaven with 100 year plus lease were valued around £270,000. The average ground rent payable was £55 collected per annum. The lease elapsed in 2101. Taking into account 75 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.
Dr V Robinson bought a ground floor apartment in Newhaven in October 2006. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Similar homes in Newhaven with an extended lease were worth £166,400. The average amount of ground rent was £60 billed yearly. The lease terminated in 2080. Having 54 years unexpired we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 not including expenses.