The market value of a leasehold property in Potswood is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that formalities can be concluded prior to the 80 year threshold. Current legislation enables Potswood qualifying lessees to an additional term of ninety years on top of the remaining term, at a peppercorn rent (zero ground rent). 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.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Potswood,the lease extension solicitors 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 Potswood valuers.
Riley owned a high value flat in Potswood being sold with a lease of a few days over fifty eight years unexpired. Riley informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Riley to invoke his statutory right. Riley procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the flat.
Dr Ben Turner completed a first floor apartment in Potswood in November 2008. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparative premises in Potswood with an extended lease were valued about £254,200. The mid-range amount of ground rent was £60 collected monthly. The lease ended on 11 November 2077. Taking into account 51 years left we calculated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 not including professional charges.
Dr Aiden Jackson was assigned a lease of a first floor apartment in Potswood in November 1995. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Similar residencies in Potswood with 100 year plus lease were valued around £210,600. The mid-range amount of ground rent was £45 invoiced per annum. The lease terminated in 2088. Having 62 years outstanding we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of professional charges.