The value of Potswood leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the unexpired lease term is below than 80 years
Leasehold properties in Potswood with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Lease extensions in Potswood can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Potswood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jack was the the leasehold owner of a 2 bedroom flat in Potswood on the market with a lease of a few days over 59 years remaining. Jack informally approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Jack to exercise his statutory right. Jack procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
In 2009 we were approached by Mr Omar Collins who, having acquired a purpose-built flat in Potswood in June 2011. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Comparable premises in Potswood with an extended lease were worth £176,200. The mid-range amount of ground rent was £65 collected yearly. The lease elapsed in 2082. Having 56 years left we estimated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 not including costs.
Mr Aaron Wood acquired a newly refurbished apartment in Potswood in June 2007. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparative homes in Potswood with a long lease were worth £242,600. The average amount of ground rent was £45 invoiced every twelve months. The lease expired in 2093. Taking into account 67 years unexpired we calculated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of fees.