Unfortunately that a Potton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Potton property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining dips under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Potton will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Potton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Potton valuers.
Two years ago Evan, started to get close to the eighty-year threshold with the lease on his two bedroom apartment in Potton. Having bought his flat twenty years ago, the unexpired term was of minimal interest. Luckily, he recognised he needed to take steps soon on Extending the lease. Evan arranged for a lease extension just ahead of time in June. Evan and the freeholder via the management company subsequently agreed on a premium of £5,500 . If he had missed the deadline, the premium would have increased by at least £975.
Last Spring we were e-mailed by Mr F Rogers , who bought a newly refurbished flat in Potton in March 2008. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparable residencies in Potton with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced annually. The lease end date was on 12 September 2096. Having 71 years unexpired we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.
Mr Toby Roberts purchased a ground floor apartment in Potton in November 2003. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Similar flats in Potton with 100 year plus lease were worth £225,800. The average amount of ground rent was £60 collected every twelve months. The lease termination date was on 4 September 2085. Given that there were 60 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 plus professional charges.