As the length of the unexpired term of a Poole residential lease lessens so does its value and therefore the value of your property. Where the residual term has, beyond 125 years remaining then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner rather than later. The majority of flat owners in Poole will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| 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. |
Lease extensions in Poole can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor 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 in-depth market knowledge procuring Poole lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Tommy, started to get near to the 80-year threshold with the lease on his one bedroom flat in Poole. In buying his flat 19 years ago, the lease term was of little bearing. Fortunately, he became aware that he would imminently be paying an inflated amount for Extending the lease. Tommy extended the lease just in the nick of time last January. Tommy and the freeholder eventually agreed on a premium of £5,500 . If he failed to meet the deadline, the premium would have become more exhorbitant by a minimum £900.
In 2012 we were called by Mrs J Hall who, having purchased a ground floor flat in Poole in May 1995. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparative homes in Poole with an extended lease were in the region of £275,000. The average ground rent payable was £55 collected monthly. The lease expired in 2102. Taking into account 76 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Mr Hugo Fournier completed a studio apartment in Poole in July 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Poole with an extended lease were in the region of £176,200. The mid-range ground rent payable was £65 billed annually. The lease ended on 6 January 2082. Taking into account 56 years left we estimated the premium to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of professional charges.