Letchworth Garden City leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Letchworth Garden City will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain situations you may not qualify. There are prescribed timetables and formalities to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Letchworth Garden City can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in lease extensions.
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.
Tommy was the the leasehold owner of a studio flat in Letchworth Garden City on the market with a lease of a few days over 61 years unexpired. Tommy on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Tommy to invoke his statutory right. Tommy procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Christmas we were phoned by Ms Jodie Williams , who acquired a purpose-built apartment in Letchworth Garden City in February 1997. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar premises in Letchworth Garden City with an extended lease were valued about £285,000. The mid-range ground rent payable was £55 collected quarterly. The lease ran out in 2105. Considering the 80 years outstanding we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.
Last November we were phoned by Dr William Young , who acquired a newly refurbished flat in Letchworth Garden City in February 1996. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Letchworth Garden City with 100 year plus lease were worth £200,800. The average amount of ground rent was £65 invoiced every twelve months. The lease end date was on 3 April 2085. Having 60 years unexpired we approximated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 not including fees.