It’s a harsh truth that a Potton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Potton property market.Once your lease nears 85ish years, you should start considering a lease extension. If lease term slips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Potton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Potton with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Potton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Potton valuers.
Half a year ago Reuben, started to get near to the 80-year mark with the lease on his basement apartment in Potton. In buying his property 18 years previously, the unexpired term was of no importance. Fortunately, he realised he would imminently be paying an escalated premium for a lease extension. Reuben was able to extend his lease at the eleventh hour in April. Reuben and the freeholder via the managing agents ultimately agreed on sum of £6,000 . If he had missed the deadline, the sum would have become more costly by a minimum £1,050.
Last Winter we were e-mailed by Mr and Mrs. G Moore , who moved into a basement apartment in Potton in January 2004. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Similar residencies in Potton with a long lease were worth £189,000. The average ground rent payable was £55 billed monthly. The lease came to a finish in 2079. Given that there were 53 years remaining we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of costs.
Mr F Sánchez moved into a ground floor flat in Potton in September 2007. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Identical flats in Potton with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 invoiced yearly. The lease ended on 23 September 2099. Given that there were 73 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.