It’s an underpublicised truth that a Potters Bar residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Potters Bar property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. Most flat owners in Potters Bar will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Lease extensions in Potters Bar can be a difficult process. We recommend you get guidance from a conveyancer 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 Potters Bar lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Blake, came critically near to the eighty-year threshold with the lease on his basement flat in Potters Bar. Having purchased his flat 19 years ago, the unexpired term was of little significance. by good luck, he became aware that he would imminently be paying an inflated amount for a lease extension. Blake extended the lease just ahead of time last June. Blake and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If he failed to meet the deadline, the premium would have increased by at least £950.
Mrs Hollie Morel took over the lease of a one bedroom flat in Potters Bar in April 2009. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable flats in Potters Bar with a long lease were worth £225,800. The average ground rent payable was £60 invoiced monthly. The lease ended in 2086. Considering the 60 years remaining we approximated the premium to the freeholder for the lease extension to be between £24,700 and £28,600 plus expenses.
An example of a Lease Extension case for a Potters Bar property 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 was in relation to 1 flat. The unexpired term was 76 years.