The only way is down when it comes to Potswood lease terms. Potswood leaseholds that have a residual term fewer than 80 years will de-escalate in market price at a rapid rate, and the cost to extend your lease will rise.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The conveyancers that we work with procure 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 conveyancing solicitor we work with provide it.
After unsuccessful discussions with the freeholder of her purpose-built flat in Potswood, Charlotte started the lease extension process just as the lease was nearing the crucial eighty-year mark. The lease extension was finalised in July 2012. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were contacted by Ms Freya Thomas who, having acquired a ground floor flat in Potswood in September 1999. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Potswood with 100 year plus lease were valued about £265,000. The average ground rent payable was £50 invoiced annually. The lease expired on 12 May 2098. Given that there were 73 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Dr Ollie Taylor was assigned a lease of a garden apartment in Potswood in September 1999. The question was if we could estimate the premium could be for a 90 year lease extension. Similar premises in Potswood with a long lease were in the region of £264,000. The average ground rent payable was £60 billed monthly. The lease lapsed on 3 February 2078. Considering the 53 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 plus fees.