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Main reasons to commence your Newhaven lease extension

Main reasons to commence your Newhaven lease extension today:

Increase your lease and increase your Newhaven property value

With a long leasehold premises in Newhaven, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are less than 80 years remaining. Residents in Newhaven with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once the lease term has under 80 years outstanding, under the relevant Act the landlord is entitled to calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is payable.

Newhaven property with a lease extension is almost the same value as a freehold

It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Lenders may not finance a property with a short lease

Nearly all mortgage companies insist on a lengthy amount of time remaining on any leasehold residence before they will consider it as adequate security. Regardless of whether you need a mortgage, you should bear in mind that it is probable that someone intending to acquire your property in the future might well do, so in the event that they can't obtain a mortgage, then the value of the property will likely suffer. Since 2008 most banks and building societies have increased the required minimum lease length that they are prepared to accept

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.
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.
Yorkshire 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.

Why use us for your lease extension in Newhaven?

The conveyancers 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 conveyancer we work with provide it.

Newhaven Lease Extension Case Studies:

Jackson, Newhaven, East Sussex,

Jackson owned a studio apartment in Newhaven being sold with a lease of a few days over sixty years remaining. Jackson on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jackson to exercise his statutory right. Jackson procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.

Newhaven case:

Mrs O Alexander bought a studio flat in Newhaven in April 2010. The dilemma was if we could approximate the price would be for a ninety year lease extension. Identical properties in Newhaven with a long lease were valued around £186,000. The mid-range ground rent payable was £65 collected monthly. The lease concluded on 2 February 2081. Considering the 58 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 plus professional charges.

Newhaven case:

In 2012 we were phoned by Ms S Mercier who, having moved into a one bedroom apartment in Newhaven in August 2004. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Newhaven with 100 year plus lease were valued around £250,000. The average amount of ground rent was £50 collected yearly. The lease expired in 2092. Given that there were 69 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.