Main reasons to commence your Potters Bar lease extension

Top reasons for lease extension now:

Increase your lease and increase your Potters Bar property value

The market value of a leasehold property in Potters Bar depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be concluded ahead of the 80 year cut off point. Current legislation enables Potters Bar qualifying lessees to acquire a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Potters Bar with in excess of 100 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.

Lenders will not loan monies with a short lease

Most banks have constrained their lending criteria in recent years and borrowers are encountering difficulties in arranging finance or re-mortgage against flats with shorter lease terms, particularly under seventy years as they are deemed to be unacceptable for lending purposes.

Get in touch with one of our Potters Bar lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Potters Bar,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Potters Bar valuers.

Potters Bar Lease Extension Example Cases:

Danielle, Potters Bar, Hertfordshire,

In the wake of eight months of lengthy discussions with the freeholder of her leasehold flat in Potters Bar, Danielle commenced the lease extension process as the eighty year deadline was fast advancing. The legal work completed in May 2008. The landlord’s charges were negotiated to slightly above four hundred pounds.

Potters Bar case:

Mr T Phillips completed a studio flat in Potters Bar in April 1996. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Similar flats in Potters Bar with a long lease were valued around £216,000. The average ground rent payable was £60 collected per annum. The lease came to a finish in 2084. Taking into account 58 years unexpired we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.