When it comes to domestic leasehold premises in Letchworth Garden City, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years left. Leasehold owners in Letchworth Garden City with a lease approaching 81 years left should seriously consider extending it without delay. Once the lease term has below eighty years left, under the relevant statute the freeholder is entitled to calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Skipton Building Society | |
| Virgin |
Using our service gives you enhanced control over the value of your Letchworth Garden City leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Harry owned a 2 bedroom flat in Letchworth Garden City being sold with a lease of a few days over fifty eight years unexpired. Harry informally spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Harry to exercise his statutory right. Harry procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
In 2009 we were contacted by Mr and Mrs. H Green who, having purchased a garden apartment in Letchworth Garden City in April 2001. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Letchworth Garden City with 100 year plus lease were worth £250,000. The average ground rent payable was £50 invoiced quarterly. The lease terminated on 25 July 2096. Considering the 70 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
In 2010 we were contacted by Dr J André who, having was assigned a lease of a studio flat in Letchworth Garden City in June 2008. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar premises in Letchworth Garden City with 100 year plus lease were worth £246,800. The average amount of ground rent was £60 invoiced annually. The lease concluded on 25 May 2076. Considering the 50 years unexpired we estimated the premium to the landlord to extend the lease to be between £44,700 and £51,600 not including professional charges.