Welwyn Garden City residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Nationwide Building Society | |
| Santander | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a landlord in Welwyn Garden City,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Welwyn Garden City valuers.
Kai owned a studio flat in Welwyn Garden City on the market with a lease of just over 61 years unexpired. Kai informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Kai to invoke his statutory right. Kai obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last Summer we were e-mailed by Mr and Mrs. L Kelly , who was assigned a lease of a one bedroom apartment in Welwyn Garden City in November 2012. The question was if we could estimate the premium could be for a 90 year lease extension. Similar premises in Welwyn Garden City with a long lease were valued about £256,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease finished on 19 November 2078. Given that there were 52 years left we calculated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 plus fees.
Mr and Mrs. C Howard purchased a ground floor flat in Welwyn Garden City in May 1998. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar premises in Welwyn Garden City with 100 year plus lease were valued about £218,000. The average amount of ground rent was £45 invoiced quarterly. The lease came to a finish on 25 September 2089. Having 63 years remaining we approximated the premium to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of expenses.