Main reasons to start your Houghton Regis lease extension

Why you should start your Houghton Regis lease extension today:

Increase your lease and increase your Houghton Regis property value

The re-sale value of a leasehold property in Houghton Regis is impacted by how long the lease has left to run. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded well before the eighty year threshold. Statute entitles Houghton Regis qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

Houghton Regis property with a lease extension is almost the same value as a freehold

Leasehold premises in Houghton Regis with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.

Banks and Building Societies may decide not to finance a property on a short lease

The propensity since over the last decade has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. In the past mortgage companies would lend on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Houghton Regis lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Houghton Regis,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Houghton Regis valuers.

Houghton Regis Lease Extension Case Summaries:

David, Houghton Regis, Bedfordshire,

David owned a studio flat in Houghton Regis on the market with a lease of fraction over 72 years outstanding. David informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were David to exercise his statutory right. David obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.

Houghton Regis case:

In 2014 we were approached by Mr and Mrs. A Bonnet who, having completed a first floor flat in Houghton Regis in August 2000. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Similar homes in Houghton Regis with an extended lease were in the region of £270,000. The average ground rent payable was £65 collected every twelve months. The lease ran out on 6 August 2094. Taking into account 68 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.

Houghton Regis case:

In 2013 we were approached by Dr Rory Leroy who, having purchased a ground floor flat in Houghton Regis in April 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparative flats in Houghton Regis with a long lease were worth £208,600. The average amount of ground rent was £60 billed per annum. The lease ended in 2083. Having 57 years outstanding we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus professional charges.