As the length of the unexpired term of a Potters Bar residential lease lessens so does its value and therefore the value of your property. Where the lease has, more than 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Potters Bar will qualify for this right; nevertheless a lawyer will be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 lawyers that we work with procure Potters Bar 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.
Aiden was the the leasehold owner of a 2 bedroom apartment in Potters Bar on the market with a lease of a few days over 59 years outstanding. Aiden on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Aiden to exercise his statutory right. Aiden obtained expert legal guidance and secured an acceptable deal without going to tribunal and sell the property.
Dr G Sharif acquired a garden flat in Potters Bar in January 2007. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Potters Bar with an extended lease were valued about £174,200. The average ground rent payable was £55 collected yearly. The lease came to a finish in 2076. Considering the 51 years remaining we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus professional charges.
An example of a Lease Extension case for a Potters Bar residence is Flat 2 2 Netherfield Road in April 2010. The Tribunale held that premium payable for a 90 year extension to the existing Lease should be £7,705. This case related to 1 flat. The unexpired term was 76 years.