Top reasons for Potton lease extension

Main reasons to commence your Potton lease extension today:

Increase your lease and increase your Potton property value

With a long leasehold property in Potton, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Anyone in Potton with a lease drawing near to 81 years left should seriously think of extending it without delay. Once a lease has less than 80 years remaining, under the relevant legislation the freeholder is entitled to calculate and demand a greater premium, based on a technical calculation, known as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.

Lending institutions may not finance a property with a short lease

Banks and building societies are really restricting their approach as regards to homes in Potton with short leases. For example you might discover that their lending requirements are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so if you wanted to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus limiting your market.

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

Using our service gives you increased control over the value of your Potton leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Potton Lease Extension Example Cases:

Luke, Potton, Bedfordshire

Half a year ago Luke, started to get close to the 80-year mark with the lease on his leasehold flat in Potton. Having bought his property 18 years ago, the lease term was of little bearing. Luckily, he became aware that he needed to take action soon on Extending the lease. Luke arranged for a lease extension just ahead of time in January. Luke and the landlord eventually agreed on the final figure of £5,000 . If he not met the deadline, the figure would have increased by at least £900.

Potton case:

In 2011 we were phoned by Ms F Green who, having was assigned a lease of a recently refurbished apartment in Potton in July 2010. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparable flats in Potton with an extended lease were worth £240,600. The mid-range ground rent payable was £60 billed monthly. The lease came to a finish on 25 November 2088. Considering the 62 years unexpired we calculated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus fees.

Potton case:

Mr Stanley Morel acquired a studio apartment in Potton in April 2006. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable flats in Potton with a long lease were in the region of £174,200. The average amount of ground rent was £55 invoiced per annum. The lease lapsed in 2077. Taking into account 51 years left we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of costs.