The market value of a leasehold property in Houghton Regis is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be finalised ahead of the 80 year threshold. Leasehold Reform legislation enables Houghton Regis qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). 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.
Leasehold properties in Houghton Regis with over one hundred years remaining on the lease are sometimes 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 upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Skipton Building Society | |
| Virgin |
The conveyancing solicitors that we work with procure Houghton Regis lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last Winter Milo, came perilously near to the 80-year mark with the lease on his two bedroom apartment in Houghton Regis. Having purchased his flat two decades ago, the unexpired term was of no relevance. Thankfully, he noticed he would imminently be paying an inflated amount for a lease extension. Milo extended the lease just ahead of time in September. Milo and the freeholder in the end agreed on an amount of £6,000 . If the lease had dipped below 80 years, the premium would have become more costly by a minimum £950.
In 2011 we were phoned by Mr and Mrs. N Collins who, having acquired a garden apartment in Houghton Regis in July 2000. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar properties in Houghton Regis with 100 year plus lease were worth £201,200. The average ground rent payable was £55 billed quarterly. The lease concluded in 2082. Considering the 56 years left we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
Last Winter we were approach by Mr and Mrs. G Parker , who was assigned a lease of a one bedroom flat in Houghton Regis in July 2006. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Comparative flats in Houghton Regis with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 collected quarterly. The lease terminated in 2102. Considering the 76 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.