Main reasons to start your Hitchin lease extension

Why you should start your Hitchin lease extension today:

A Hitchin lease depreciates with the years remaining on the lease.

As the length of the unexpired term of a Hitchin domestic lease lessens so does its value and therefore the value of your property. Where the lease has, over 100 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. Many flat owners in Hitchin will meet the qualifying criteria; however a lawyer can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

Hitchin property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Banks and Building Societies may decide not to grant a mortgage on a short lease

Mortgage companies are inclined not lend on short residential leases. You are likely to encounter difficulties where you wish to sell your flat in Hitchin if the remaining lease term is below the criteria set by most banks and building societies. Different lenders have different criteria but on the whole they are looking for an unexpired term of at least 65 years.

What makes us experts in Hitchin lease extensions?

Engaging our service will provide 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 have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Hitchin Lease Extension Example Cases:

Natasha, Hitchin, Hertfordshire,

After unsuccessful discussions with the freeholder of her one bedroom flat in Hitchin, Natasha initiated the lease extension process as the eighty year deadline was swiftly approaching. The lease extension was finalised in August 2014. The freeholder’s fees were negotiated to approximately 500 GBP.

Hitchin case:

Last Spring we were called by Dr Katherine Kelly , who bought a one bedroom flat in Hitchin in September 1995. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar homes in Hitchin with 100 year plus lease were valued about £270,000. The average amount of ground rent was £55 invoiced annually. The lease concluded on 25 November 2101. Given that there were 75 years outstanding we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.

Hitchin case:

In 2011 we were contacted by Dr Dexter Bonnet who, having bought a garden apartment in Hitchin in May 2001. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Hitchin with a long lease were worth £173,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease end date was on 22 November 2081. Considering the 55 years unexpired we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of costs.