The only way is down when it comes to Hitchin lease terms. Hitchin properties that have a lease term shorter than eighty years will de-escalate in value at a rapid rate, and the cost to extend your lease will go up.
Leasehold residencies in Hitchin with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. 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. |
| 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 |
| Yorkshire Building Society | 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. |
Lease extensions in Hitchin can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 in-depth market knowledge 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.
Two years ago James, started to get close to the eighty-year mark with the lease on his studio apartment in Hitchin. Having purchased his property two decades ago, the lease term was of minimal interest. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. James was able to extend his lease just under the wire last May. James and the landlord who owned the flat above in the end settled on an amount of £5,000 . If he not met the deadline, the premium would have escalated by a minimum £900.
Mr B Nelson bought a one bedroom flat in Hitchin in January 2003. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Similar properties in Hitchin with a long lease were valued around £290,000. The average amount of ground rent was £60 invoiced annually. The lease lapsed on 13 May 2106. Given that there were 80 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.
Mrs D Lee bought a garden flat in Hitchin in May 1995. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Similar properties in Hitchin with 100 year plus lease were valued about £200,800. The average amount of ground rent was £65 billed annually. The lease came to a finish on 11 September 2086. Taking into account 60 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 plus legals.