There is no doubt about it a leasehold flat or house in Potters Bar is a wasting asset as a result of the shortening lease. If the lease has, in excess of 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Potters Bar will qualify for this right; nevertheless a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Potters Bar with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
The conveyancing solicitors that we work with handle 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.
Off the back of unsuccessful correspondence with the freeholder of her basement apartment in Potters Bar, Melissa initiated the lease extension process as the eighty year mark was fast coming. The lease extension was concluded in June 2015. The freeholder’s fees were restricted to below 700 GBP.
In 2013 we were phoned by Mr W Watson who, having moved into a garden apartment in Potters Bar in September 2003. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative properties in Potters Bar with a long lease were in the region of £280,000. The average ground rent payable was £45 billed annually. The lease came to a finish on 22 November 2096. Considering the 70 years unexpired we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including 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 was in relation to 1 flat. The unexpired residue of the current lease was 76 years.