The closer a residential lease in Houghton Regis gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than 99 years remaining then this decrease may be of little impact however there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. Many flat owners in Houghton Regis will qualify for this right; however a conveyancer should be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Yorkshire 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. |
The conveyancers that we work with handle Houghton Regis lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
After unsuccessful discussions with the freeholder of her basement apartment in Houghton Regis, Maisie initiated the lease extension process as the eighty year mark was swiftly approaching. The transaction completed in August 2006. The freeholder’s fees were negotiated to approximately 450 pounds.
In 2012 we were phoned by Mrs I Lefèvre who, having took over the lease of a studio apartment in Houghton Regis in September 2006. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparable flats in Houghton Regis with a long lease were in the region of £181,600. The average ground rent payable was £55 collected yearly. The lease came to a finish in 2077. Given that there were 52 years outstanding we estimated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of costs.
In 2012 we were contacted by Mr and Mrs. C Pérez who, having acquired a studio apartment in Houghton Regis in June 2004. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical homes in Houghton Regis with an extended lease were valued about £290,000. The mid-range amount of ground rent was £45 billed quarterly. The lease expired in 2097. Taking into account 72 years remaining we approximated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus legals.