Potton residential property held on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
Leasehold premises in Potton with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Skipton Building Society | |
| Royal Bank of Scotland | |
| Virgin | |
| Yorkshire Building Society |
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 Freddie, came seriously near to the eighty-year mark with the lease on his basement apartment in Potton. In buying his property 18 years ago, the unexpired term was of no importance. Thankfully, he noticed he needed to take steps soon on a lease extension. Freddie extended the lease at the eleventh hour in June. Freddie and the freeholder in the end settled on the final figure of £5,500 . If the lease had gone below 80 years, the amount would have gone up by at least £900.
In 2012 we were contacted by Mr and Mrs. N Reed who, having acquired a one bedroom flat in Potton in July 1999. We are asked if we could approximate the price could be to prolong the lease by 90 years. Comparative residencies in Potton with 100 year plus lease were valued about £280,000. The average ground rent payable was £45 billed quarterly. The lease expired on 15 July 2096. Having 70 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.
Ms J Torres moved into a one bedroom apartment in Potton in September 1999. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable premises in Potton with a long lease were in the region of £223,400. The average amount of ground rent was £60 collected per annum. The lease came to a finish in 2085. Considering the 59 years left we calculated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of fees.