Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Houghton Le Spring. Inevitably, the period of lease left reduces as time goes by. This is often ignored and only becomes a problem when the flat or house has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Houghton Le Spring have the right to extend the lease for a further 90 years under legislation. Please give due deliberation before putting off your Houghton Le Spring lease extension. Putting off the cost now only increases the price you will ultimately incur for a lease extension
Leasehold premises in Houghton Le Spring with over one hundred 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Engaging our service gives you increased control over the value of your Houghton Le Spring leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the landlord of her purpose-built flat in Houghton Le Spring, Louise initiated the lease extension process just as the lease was approaching the all-important 80-year deadline. The transaction completed in January 2012. The landlord’s charges were kept to an absolute minimum.
Dr B Martin moved into a recently refurbished apartment in Houghton Le Spring in July 2001. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative properties in Houghton Le Spring with a long lease were worth £275,000. The mid-range ground rent payable was £55 billed monthly. The lease ended in 2102. Given that there were 77 years left we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.
Last March we were contacted by Dr Felix Martinez , who was assigned a lease of a basement flat in Houghton Le Spring in September 2009. The question was if we could approximate the price would likely be to extend the lease by 90 years. Identical properties in Houghton Le Spring with 100 year plus lease were in the region of £183,600. The mid-range amount of ground rent was £65 collected monthly. The lease came to a finish in 2082. Having 57 years remaining we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including professional charges.