There is no doubt about it a leasehold flat or house in Houghton Le Spring is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 99 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Most flat owners in Houghton Le Spring will qualify for this right; however a lawyer should be able to confirm if you qualify to extend your lease. In limited 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 generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Coventry Building Society | |
| TSB | |
| Virgin |
Lease extensions in Houghton Le Spring can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 dealing with Houghton Le Spring lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Teddy owned a studio apartment in Houghton Le Spring on the market with a lease of just over sixty years outstanding. Teddy informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Teddy to exercise his statutory right. Teddy procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Last Spring we were called by Mr and Mrs. B Mercier , who moved into a first floor flat in Houghton Le Spring in November 2010. The question was if we could approximate the price would be to extend the lease by a further 90 years. Identical properties in Houghton Le Spring with 100 year plus lease were worth £265,000. The average ground rent payable was £55 collected annually. The lease ended in 2100. Having 74 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.
Last February we were called by Mr Jayden Hill , who was assigned a lease of a one bedroom flat in Houghton Le Spring in September 2007. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative premises in Houghton Le Spring with a long lease were valued about £166,400. The average ground rent payable was £60 invoiced yearly. The lease elapsed in 2080. Considering the 54 years unexpired we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 not including professional charges.