With a long leasehold premises in Hitchin, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Leasehold owners in Hitchin with a lease nearing 81 years left should seriously consider extending it sooner rather than later. When a lease has under eighty years remaining, under the current legislation the landlord can calculate and demand a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Hitchin with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Hitchin can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Hitchin lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Eli, started to get close to the 80-year mark with the lease on his leasehold flat in Hitchin. Having purchased his flat twenty years previously, the unexpired term was of no significance. As luck would have it, he recognised he needed to take action soon on a lease extension. Eli arranged for a lease extension just under the wire last September. Eli and the freeholder via the management company eventually agreed on an amount of £5,500 . If the lease had slid below 80 years, the sum would have gone up by at least £1,100.
Dr M Williams purchased a studio apartment in Hitchin in November 2000. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar premises in Hitchin with 100 year plus lease were valued around £264,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish in 2079. Considering the 53 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 plus costs.
In 2014 we were e-mailed by Mrs Jennifer Brooks who, having owned a purpose-built flat in Hitchin in November 2000. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparative premises in Hitchin with an extended lease were valued around £225,400. The average ground rent payable was £45 billed monthly. The lease ran out on 2 June 2090. Given that there were 64 years left we approximated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of professional charges.