Hitchin residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Hitchin leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful negotiations with the landlord of her leasehold apartment in Hitchin, Kayleigh commenced the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The transaction was concluded in November 2015. The landlord’s costs were kept to an absolute minimum.
Dr John Bennett completed a studio apartment in Hitchin in October 1996. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable flats in Hitchin with a long lease were in the region of £227,800. The average amount of ground rent was £45 billed monthly. The lease lapsed in 2090. Taking into account 65 years remaining we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.
Last Summer we were called by Mrs F Brown , who completed a garden flat in Hitchin in November 1998. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical properties in Hitchin with a long lease were worth £275,000. The mid-range ground rent payable was £55 collected every twelve months. The lease came to a finish in 2101. Having 76 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.