Top reasons for Newhaven lease extension
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<h3>
Main reasons to start your Newhaven lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/newhaven">Newhaven</a> lease depreciates with the years remaining on the lease.
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<p> The only way is down when it comes to Newhaven lease terms.
Newhaven flats that have a remaining term lower than eighty years will drop in market price even faster,
and the cost of extending your lease will rise.
<h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold residencies in Newhaven with over one hundred years remaining 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it. <h4>Lending institutions will not loan monies with a short lease</h4> Banks and building societies differ in their lending requirements. Some draw the line at seventy five years left on the lease; others may be willing to lend with anything over seventy years. With less than 60 years, it may be challenging to obtain a mortgage at all.
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<tr><th>Lender</th>
<th> Requirement
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<td>Accord Mortgages</td>
<td> 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.
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:<br /><br />• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
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<td>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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<td>Yorkshire Building Society</td>
<td> 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.
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<h4>
Why use us for your lease extension in Newhaven? </h4>
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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 lawyer we work with provide it.
<h4>
Newhaven Lease Extension Case Studies:
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<h5> George, Newhaven, East Sussex</h5>
<p> In 2014 George, started to get near to the eighty-year mark with the lease on his first floor apartment in Newhaven. Having purchased his home two decades ago, the unexpired term was of little interest. Fortunately, he noticed he would imminently be paying way over the odds for Extending the lease. George extended the lease at the eleventh hour in June. George and the freeholder ultimately settled on sum of £6,000 . If the lease had dipped to less than 80 years, the premium would have become more exhorbitant by at least £925.
<h5>Newhaven case:</h5>
<p> Dr Milo Johnson took over the lease of a garden apartment in Newhaven in September 2012. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Similar properties in Newhaven with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease terminated in 2103. Given that there were 77 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including expenses.
<h5>Newhaven case:</h5>
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Last year we were contacted by Mrs J Moreau , who
purchased a studio apartment in Newhaven in August 2001. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative premises in Newhaven with an extended lease were valued around £183,600. The average ground rent payable was £65 invoiced every twelve months. The lease concluded on 28 November 2083. Given that there were 57 years remaining we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.
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