Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Potton. Inevitably, the term of lease left shortens as time goes by. This is often ignored and only becomes a problem when the property has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Potton have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. You should give due deliberation before delaying your Potton lease extension. Putting off that expense now only increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Potton leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy negotiations with the landlord of her ground floor flat in Potton, Ellen started the lease extension process just as the lease was coming close to the crucial 80-year deadline. The legal work was concluded in July 2007. The freeholder’s costs were restricted to below 550 pounds.
In 2010 we were approached by Mrs R Howard who, having moved into a studio apartment in Potton in November 1997. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparative properties in Potton with a long lease were in the region of £233,200. The average amount of ground rent was £60 collected annually. The lease expired on 2 February 2087. Considering the 61 years outstanding we estimated the premium to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of expenses.
Ms R Nguyen purchased a purpose-built apartment in Potton in May 2000. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Potton with a long lease were worth £171,800. The average ground rent payable was £55 billed quarterly. The lease ran out in 2076. Having 50 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of costs.