Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Potton. Clearly, the period of lease left shortens over time. This may slip by relatively unnoticed when the residence needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in Potton have the right to extend the lease for an additional ninety years in accordance with legislation. You should give careful deliberation before putting off your Potton lease extension. Putting off the cost now simply increases the price you will eventually incur to extend your lease
Leasehold premises in Potton with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Regardless of whether you are a tenant or a landlord in Potton,the lease extension lawyers 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.
Trailing lengthy negotiations with the freeholder of her two bedroom apartment in Potton, Rosie initiated the lease extension process just as her lease was nearing the critical 80-year threshold. The legal work was concluded in February 2007. The freeholder’s costs were restricted to below 600 pounds.
Dr Eli Rodríguez bought a ground floor apartment in Potton in March 2001. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical premises in Potton with an extended lease were worth £205,000. The mid-range ground rent payable was £50 collected every twelve months. The lease elapsed on 9 August 2104. Taking into account 79 years left we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.
In 2010 we were called by Mr Eliot Pérez who, having acquired a basement apartment in Potton in January 1995. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Identical homes in Potton with an extended lease were in the region of £275,000. The average amount of ground rent was £65 billed quarterly. The lease concluded in 2093. Taking into account 68 years remaining we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.