For anyone whose Houghton Le Spring flat is held on a long lease, our message is clear – if you ignore the situation, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension.
Leasehold premises in Houghton Le Spring with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Houghton Le Spring,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Houghton Le Spring valuers.
Last Autumn Gabriel, started to get near to the eighty-year mark with the lease on his basement flat in Houghton Le Spring. Having bought his flat 18 years previously, the unexpired term was of little significance. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Gabriel arranged for a lease extension just ahead of time last March. Gabriel and the landlord eventually agreed on sum of £6,000 . If the lease had slipped lower than 80 years, the amount would have become more exhorbitant by a minimum £925.
In 2013 we were contacted by Dr A Lambert who, having was assigned a lease of a studio apartment in Houghton Le Spring in June 2004. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical residencies in Houghton Le Spring with an extended lease were worth £200,800. The average amount of ground rent was £65 collected monthly. The lease lapsed on 13 September 2086. Considering the 60 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of professional charges.
Dr Megan Martinez purchased a basement flat in Houghton Le Spring in July 1999. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar premises in Houghton Le Spring with an extended lease were in the region of £255,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease ended on 28 July 2097. Taking into account 71 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.