The nearer a residential lease in Potters Bar gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 99 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease sooner than later. Most flat owners in Potters Bar will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Potters Bar,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Potters Bar valuers.
Henry owned a high value flat in Potters Bar being marketed with a lease of a few days over 72 years unexpired. Henry informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Henry to invoke his statutory right. Henry procured expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
Mr and Mrs. U Carter took over the lease of a ground floor flat in Potters Bar in March 2000. The question was if we could estimate the premium would be to extend the lease by 90 years. Identical properties in Potters Bar with an extended lease were in the region of £300,000. The average ground rent payable was £50 billed annually. The lease expired on 16 May 2100. Given that there were 75 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Potters Bar premises is Flat 2 2 Netherfield Road in April 2010. The Tribunale held that premium payable for a 90 year extension to the existing Lease should be £7,705. This case related to 1 flat. The unexpired term as at the valuation date was 76 years.