The market value of Letchworth Garden City leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the unexpired lease term is below than eighty years
Leasehold properties in Letchworth Garden City with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Lease extensions in Letchworth Garden City can be a difficult process. We recommend you get professional help 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 in-depth market knowledge dealing with 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 unsuccessful discussions with the landlord of her basement apartment in Letchworth Garden City, Elizabeth initiated the lease extension process as the eighty year deadline was fast coming. The legal work was finalised in May 2009. The freeholder’s fees were restricted to less than 450 GBP.
In 2011 we were contacted by Dr O González who, having moved into a basement flat in Letchworth Garden City in June 2010. The question was if we could approximate the premium would be for a 90 year extension to my lease. Similar homes in Letchworth Garden City with 100 year plus lease were worth £265,000. The average ground rent payable was £50 collected every twelve months. The lease lapsed in 2099. Taking into account 74 years left we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Last month we were phoned by Ms G Patel , who owned a studio flat in Letchworth Garden City in February 1999. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical premises in Letchworth Garden City with 100 year plus lease were worth £166,400. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2079. Considering the 54 years left we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of fees.