Main reasons to commence your Potswood lease extension

Why you should commence your Potswood lease extension today:

A Potswood lease depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Potswood depends on how many years the lease has left to run. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be finalised in advance of the eighty year mark. Statute enables Potswood qualifying lessees to obtain a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention 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.

Potswood property with a lease extension has roughly the same value as a freehold

It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies will not issue a mortgage with a short lease

Almost all mortgage lenders insist on a lengthy amount of time remaining on a leasehold property before they will consider providing a mortgage on it. Regardless of whether you require a mortgage, you should bear in mind that it is likely that someone wishing to purchase your property in the future might well do, so if they can't get a mortgage, then the value of your property will likely be adversely impacted. In the last decade many mortgage lenders have increased the required minimum lease length that they are willing to grant a mortgage on

Why use us for your lease extension in Potswood?

The conveyancers that we work with undertake Potswood 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.

Potswood Lease Extension Case Studies:

Isabelle, Potswood, Hampshire,

Trailing unsuccessful discussions with the landlord of her leasehold apartment in Potswood, Isabelle commenced the lease extension process just as her lease was coming close to the critical eighty-year deadline. The lease extension completed in November 2013. The landlord’s costs were kept to an absolute minimum.

Potswood case:

Last Christmas we were contacted by Dr P Rivera , who took over the lease of a first floor flat in Potswood in September 2008. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparable premises in Potswood with 100 year plus lease were valued about £235,200. The average ground rent payable was £45 collected monthly. The lease elapsed on 26 February 2092. Taking into account 66 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.

Potswood case:

In 2013 we were contacted by Dr Harriet Garcia who, having took over the lease of a garden flat in Potswood in June 2010. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparative properties in Potswood with a long lease were valued about £275,000. The mid-range amount of ground rent was £55 collected yearly. The lease expired on 18 January 2103. Having 77 years unexpired we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus costs.