Chances are that if you own a flat in Houghton Regis you actually own a long leasehold interest over your property
Leasehold residencies in Houghton Regis with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth 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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Houghton Regis can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor 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 Regis lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the landlord of her one bedroom apartment in Houghton Regis, Isabella initiated the lease extension process just as her lease was coming close to the critical 80-year threshold. The legal work completed in May 2011. The landlord’s fees were restricted to approximately 500 pounds.
Dr Imogen Hall took over the lease of a studio apartment in Houghton Regis in September 1996. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparative flats in Houghton Regis with an extended lease were valued around £295,000. The mid-range ground rent payable was £45 billed monthly. The lease expired on 24 June 2100. Having 74 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.
Last year we were contacted by Dr U Lefèvre , who acquired a purpose-built flat in Houghton Regis in September 2008. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Identical premises in Houghton Regis with an extended lease were valued around £250,400. The mid-range amount of ground rent was £65 collected quarterly. The lease came to a finish in 2090. Having 64 years unexpired we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including professional charges.