It’s a harsh certainty that a Houghton Le Spring residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Houghton Le Spring property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Houghton Le Spring will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Houghton Le Spring with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder 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.
After unsuccessful discussions with the landlord of her two bedroom apartment in Houghton Le Spring, Maisie commenced the lease extension process just as the lease was approaching the critical 80-year mark. The lease extension was finalised in August 2013. The landlord’s charges were kept to an absolute minimum.
In 2013 we were called by Mr Ethan Martin who, having completed a purpose-built apartment in Houghton Le Spring in September 2004. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical flats in Houghton Le Spring with 100 year plus lease were valued about £264,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease elapsed in 2078. Considering the 53 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of costs.
Last Summer we were called by Mr and Mrs. L Cook , who acquired a one bedroom flat in Houghton Le Spring in January 1995. The question was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable homes in Houghton Le Spring with a long lease were valued around £225,400. The average ground rent payable was £45 billed per annum. The lease came to a finish in 2089. Given that there were 64 years left we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 plus costs.