Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily 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 period of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Letchworth Garden City have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Please give careful consideration before delaying your Letchworth Garden City lease extension. Putting off the cost now likely increases the price you will ultimately incur to extend your lease
Leasehold premises in Letchworth Garden City with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Engaging our service will provide you enhanced control over the value of your Letchworth Garden City 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted discussions with the freeholder of her ground floor flat in Letchworth Garden City, Ashleigh commenced the lease extension process just as the lease was coming close to the critical 80-year deadline. The transaction completed in April 2008. The freeholder’s fees were kept to an absolute minimum.
Last November we were approach by Ms A Morris , who moved into a studio apartment in Letchworth Garden City in September 2012. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable premises in Letchworth Garden City with 100 year plus lease were valued around £186,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease termination date was in 2084. Having 58 years unexpired we estimated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 not including professional charges.
Mr and Mrs. N Clark moved into a purpose-built apartment in Letchworth Garden City in April 2010. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar homes in Letchworth Garden City with an extended lease were in the region of £250,000. The average ground rent payable was £50 invoiced monthly. The lease ran out on 5 May 2095. Considering the 69 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.