The re-sale value of a leasehold property in Houghton Regis depends on how long the lease has remaining. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of buying. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that all matters can be addressed prior to the 80 year cut off point. Statute entitles Houghton Regis qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Houghton Regis,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 Regis valuers.
After protracted correspondence with the freeholder of her ground floor apartment in Houghton Regis, Erin initiated the lease extension process as the eighty year threshold was rapidly nearing. The lease extension was finalised in August 2009. The freeholder’s costs were negotiated to approximately 700 GBP.
Dr Chelsea Edwards purchased a ground floor flat in Houghton Regis in September 1996. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative flats in Houghton Regis with a long lease were worth £171,800. The mid-range amount of ground rent was £55 invoiced monthly. The lease lapsed on 17 November 2076. Considering the 50 years left we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of professional charges.
Dr W Bell bought a one bedroom apartment in Houghton Regis in October 2012. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical homes in Houghton Regis with a long lease were worth £280,000. The average ground rent payable was £45 invoiced quarterly. The lease came to a finish in 2096. Having 70 years left we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.