With a long leasehold premises in Hitchin, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Anyone in Hitchin with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has below eighty years remaining, under the current Act the freeholder can calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Hitchin with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Hitchin,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hitchin valuers.
Trailing lengthy negotiations with the freeholder of her two bedroom flat in Hitchin, Paige started the lease extension process as the 80 year deadline was swiftly nearing. The transaction was finalised in March 2005. The landlord’s charges were negotiated to approximately 700 GBP.
Last Winter we were phoned by Mr and Mrs. S Lee , who moved into a basement apartment in Hitchin in March 1997. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Hitchin with an extended lease were in the region of £200,800. The average amount of ground rent was £65 invoiced every twelve months. The lease came to a finish in 2086. Having 60 years as a residual term we approximated the premium to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of legals.
Mr and Mrs. F Rogers acquired a studio flat in Hitchin in October 2005. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable properties in Hitchin with a long lease were in the region of £255,000. The average ground rent payable was £50 collected per annum. The lease lapsed on 25 November 2097. Taking into account 71 years unexpired we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.