Top reasons for Letchworth Garden City lease extension

Top reasons for lease extension now:

A Letchworth Garden City leasehold property depreciates with the years remaining on the lease.

Letchworth Garden City leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the existing lease drops lower than 80 years - otherwise a higher amount will be due. Flat owners in Letchworth Garden City will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not qualify. There are also strict timetables and formalities to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.

Letchworth Garden City property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Mortgage lenders may decide not to grant a mortgage on a short lease

Most banks and building societies will not lend on a lease with under 70 years remaining - although this varies between mortgage companies. A buyer will likely find it difficult to obtain a mortgage and this could result in your Letchworth Garden City property becoming difficult to dispose of or to obtain finance on.

Get in touch with one of our Letchworth Garden City lease extension solicitors or enfranchisement solicitors

The lawyers that we work with procure 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.

Letchworth Garden City Lease Extension Example Cases:

Hollie, Letchworth Garden City, Hertfordshire,

Following protracted discussions with the freeholder of her leasehold apartment in Letchworth Garden City, Hollie started the lease extension process just as the lease was nearing the critical eighty-year deadline. The legal work was concluded in January 2012. The freeholder’s charges were kept to an absolute minimum.

Letchworth Garden City case:

In 2009 we were approached by Dr G Harris who, having owned a ground floor apartment in Letchworth Garden City in May 1996. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Similar flats in Letchworth Garden City with an extended lease were worth £235,200. The mid-range amount of ground rent was £45 collected every twelve months. The lease concluded in 2092. Taking into account 66 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.

Letchworth Garden City case:

Last Summer we were phoned by Mr and Mrs. J Rose , who owned a studio apartment in Letchworth Garden City in October 2003. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Similar premises in Letchworth Garden City with an extended lease were in the region of £275,000. The average amount of ground rent was £55 collected monthly. The lease finished on 9 July 2103. Considering the 77 years unexpired we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.