With a long leasehold property in Potton, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years left. Leasehold owners in Potton with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has under 80 years left, under the relevant statute the landlord can calculate and demand a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Potton can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Potton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the landlord of her purpose-built apartment in Potton, Chantelle initiated the lease extension process just as her lease was coming close to the crucial eighty-year mark. The transaction was finalised in July 2007. The landlord’s charges were kept to an absolute minimum.
In 2011 we were phoned by Mr Ollie Evans who, having acquired a one bedroom apartment in Potton in June 2001. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar flats in Potton with an extended lease were worth £290,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease concluded in 2097. Having 72 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
In 2012 we were contacted by Mrs R Cox who, having bought a basement apartment in Potton in May 2009. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Identical premises in Potton with an extended lease were valued around £233,200. The mid-range ground rent payable was £60 billed monthly. The lease expired in 2086. Having 61 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 exclusive of expenses.