Unfortunately that a Potton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Potton property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of 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 if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Potton with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Potton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Kyle, started to get near to the 80-year threshold with the lease on his garden apartment in Potton. Having purchased his home two decades ago, the unexpired term was of minimal importance. by good luck, he recognised he would soon be paying an inflated amount for Extending the lease. Kyle was able to extend his lease just under the wire in May. Kyle and the landlord in the end agreed on a premium of £6,000 . If the lease had dipped below 80 years, the premium would have become more costly by a minimum £950.
Mr and Mrs. V François was assigned a lease of a purpose-built apartment in Potton in September 2011. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Similar premises in Potton with an extended lease were in the region of £257,800. The mid-range ground rent payable was £65 collected yearly. The lease ended in 2091. Having 65 years unexpired we approximated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including legals.
Last Summer we were contacted by Ms C Petit , who owned a basement flat in Potton in September 2005. The dilemma was if we could estimate the price would be to prolong the lease by a further 90 years. Identical properties in Potton with an extended lease were valued about £191,400. The average amount of ground rent was £55 billed annually. The lease end date was in 2080. Considering the 54 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of expenses.