The market value of a leasehold property in Hitchin depends on how long the lease has left to run. If it is close to or less than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be addressed ahead of the 80 year mark. Leasehold Reform legislation entitles Hitchin qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Santander | |
| The Mortgage Works |
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 wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jake owned a conversion apartment in Hitchin being sold with a lease of fraction over 61 years left. Jake on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be payable on a lease extension were Jake to exercise his statutory right. Jake procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Mrs Rachel Martínez owned a first floor flat in Hitchin in April 2000. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparative residencies in Hitchin with a long lease were worth £218,000. The mid-range ground rent payable was £45 billed every twelve months. The lease expiry date was on 22 July 2089. Taking into account 63 years as a residual term we estimated the premium to the landlord for the lease extension to be within £17,100 and £19,800 plus expenses.
Last Christmas we were contacted by Mr and Mrs. D Peterson , who purchased a newly refurbished apartment in Hitchin in July 2003. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Identical homes in Hitchin with a long lease were worth £265,000. The average amount of ground rent was £55 collected annually. The lease expired in 2100. Having 74 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.