Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Letchworth Garden City. Clearly, the length of lease left shortens over time. This is often overlooked and only becomes a problem when the residence needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in Letchworth Garden City have the right to extend the lease for an additional ninety years under statute. You should give careful consideration before putting off your Letchworth Garden City lease extension. Holding off the cost now likely increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with undertake Letchworth Garden City lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Felix was the the leasehold proprietor of a high value flat in Letchworth Garden City being marketed with a lease of fraction over 61 years outstanding. Felix informally spoke with his landlord 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 an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Felix to exercise his statutory right. Felix procured expert advice and secured satisfactory deal without going to tribunal and sell the property.
Mr and Mrs. D Lewis moved into a studio apartment in Letchworth Garden City in February 2004. The question was if we could approximate the price would be for a ninety year lease extension. Identical homes in Letchworth Garden City with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 invoiced monthly. The lease ran out in 2086. Having 60 years left we estimated the premium to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of expenses.
Dr K Kelly purchased a studio apartment in Letchworth Garden City in September 2006. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Similar homes in Letchworth Garden City with a long lease were valued about £255,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease expired in 2097. Having 71 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.