The market value of Hitchin leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is less than 80 years
Leasehold residencies in Hitchin with over 100 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
Engaging our service will provide you better control over the value of your Hitchin leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Sebastian was the the leasehold proprietor of a 2 bedroom flat in Hitchin being sold with a lease of a few days over 59 years unexpired. Sebastian informally contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mr T Robinson owned a one bedroom flat in Hitchin in February 2004. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical homes in Hitchin with 100 year plus lease were valued about £280,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease came to a finish in 2102. Given that there were 77 years remaining we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of costs.
Mrs Rachael Adams was assigned a lease of a studio flat in Hitchin in April 1996. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable residencies in Hitchin with an extended lease were valued about £183,600. The mid-range ground rent payable was £65 invoiced monthly. The lease came to a finish on 7 June 2082. Given that there were 57 years as a residual term we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including professional charges.