It’s a harsh truth that a Letchworth Garden City residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Letchworth Garden City property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be due. Most flat owners in Letchworth Garden City will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a residential leasehold with over 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 unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Letchworth Garden City can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Letchworth Garden City lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the freeholder of her basement flat in Letchworth Garden City, Natasha started the lease extension process as the 80 year deadline was quickly nearing. The transaction completed in July 2012. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were approach by Mr and Mrs. I Hall , who bought a one bedroom apartment in Letchworth Garden City in June 2000. We are asked if we could approximate the price would be for a ninety year lease extension. Similar premises in Letchworth Garden City with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £55 billed annually. The lease elapsed in 2102. Taking into account 77 years unexpired we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.
Mr Owen Khan acquired a purpose-built apartment in Letchworth Garden City in November 1997. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparable homes in Letchworth Garden City with an extended lease were in the region of £183,600. The mid-range ground rent payable was £65 billed annually. The lease concluded in 2082. Taking into account 57 years remaining we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of legals.