With a domestic leasehold premises in Hitchin, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are less than eighty years remaining. Residents in Hitchin with a lease nearing 81 years left should seriously consider extending it as soon as possible. When the lease term has below eighty years left, under the current statute the landlord can calculate and levy a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Hitchin with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
Lease extensions in Hitchin can be a difficult process. We recommend you secure professional help 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 a wealth of experience procuring Hitchin lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted discussions with the landlord of her one bedroom apartment in Hitchin, Jasmine started the lease extension process just as the lease was coming close to the crucial 80-year deadline. The transaction completed in January 2008. The landlord’s costs were restricted to a tad over 600 pounds.
In 2009 we were contacted by Mr and Mrs. A Mason who, having owned a studio flat in Hitchin in February 1995. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Identical premises in Hitchin with 100 year plus lease were in the region of £176,200. The average amount of ground rent was £65 invoiced per annum. The lease lapsed on 4 November 2082. Having 56 years remaining we approximated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 not including costs.
Mr and Mrs. R King moved into a garden apartment in Hitchin in August 1999. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparable residencies in Hitchin with 100 year plus lease were worth £242,600. The average amount of ground rent was £45 invoiced annually. The lease ran out in 2093. Having 67 years remaining we approximated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of legals.