When it comes to long leasehold property in Potton, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Residents in Potton with a lease approaching 81 years left should seriously think of extending it sooner as opposed to later. When a lease has fewer than 80 years outstanding, under the relevant legislation the landlord can calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Lease extensions in Potton can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
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 Potton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Freddie owned a studio apartment in Potton on the market with a lease of just over 59 years outstanding. Freddie on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Freddie to invoke his statutory right. Freddie obtained expert advice and secured satisfactory deal without resorting to tribunal and sell the property.
Mrs Georgia Howard owned a ground floor flat in Potton in July 2006. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Potton with an extended lease were worth £223,400. The mid-range ground rent payable was £60 invoiced annually. The lease ran out in 2085. Having 59 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 not including fees.
Last Christmas we were contacted by Mr and Mrs. H Young , who purchased a recently refurbished apartment in Potton in September 2007. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative homes in Potton with an extended lease were in the region of £205,000. The average ground rent payable was £50 collected quarterly. The lease lapsed on 5 January 2105. Considering the 79 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.