Potton residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Potton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
16 months ago Aiden, came critically close to the eighty-year threshold with the lease on his basement apartment in Potton. In buying his home 19 years previously, the lease term was of no importance. by good luck, he recognised he needed to take steps soon on Extending the lease. Aiden arranged for a lease extension just under the wire in August. Aiden and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If he not met the deadline, the price would have gone up by at least £1,075.
In 2013 we were called by Mrs R Moore who, having purchased a one bedroom apartment in Potton in October 1998. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar flats in Potton with 100 year plus lease were valued about £300,000. The average ground rent payable was £50 collected quarterly. The lease finished on 23 October 2102. Having 76 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.
In 2010 we were called by Dr M Lefèvre who, having was assigned a lease of a basement apartment in Potton in October 1996. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Comparative flats in Potton with 100 year plus lease were in the region of £257,800. The average ground rent payable was £65 billed every twelve months. The lease lapsed on 24 November 2091. Considering the 65 years remaining we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of fees.