The value of Houghton Regis leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is less than 80 years
Leasehold properties in Houghton Regis with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Houghton Regis can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor 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 Houghton Regis lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alexander was the the leasehold owner of a conversion apartment in Houghton Regis on the market with a lease of just over 61 years outstanding. Alexander on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Alexander to invoke his statutory right. Alexander obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2011 we were contacted by Mrs Morgan Harris who, having moved into a purpose-built flat in Houghton Regis in April 2005. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Comparative flats in Houghton Regis with an extended lease were valued about £223,400. The average amount of ground rent was £60 collected monthly. The lease termination date was on 25 February 2084. Considering the 59 years outstanding we estimated the premium to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of legals.
In 2013 we were e-mailed by Mr V Brown who, having took over the lease of a one bedroom apartment in Houghton Regis in July 2008. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical premises in Houghton Regis with an extended lease were worth £205,000. The average ground rent payable was £50 invoiced every twelve months. The lease expiry date was in 2104. Having 79 years unexpired we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.