The only way is down when it comes to Newhaven lease terms. Newhaven properties that have a residual term fewer than 80 years will reduce in market price at a rapid rate, and the cost to extend your lease will increase.
Leasehold properties in Newhaven with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
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 conveyancing solicitor we work with provide it.
Freddie owned a studio apartment in Newhaven on the market with a lease of fraction over 72 years left. Freddie on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Freddie to exercise his statutory right. Freddie obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Mrs V Smith moved into a one bedroom apartment in Newhaven in April 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Similar residencies in Newhaven with a long lease were worth £270,000. The average amount of ground rent was £55 invoiced quarterly. The lease ended in 2102. Considering the 76 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
Mr and Mrs. J Scott completed a one bedroom apartment in Newhaven in September 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Newhaven with 100 year plus lease were valued about £176,200. The average amount of ground rent was £65 collected every twelve months. The lease terminated on 9 April 2082. Having 56 years unexpired we approximated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 plus costs.