Poole leases on residential deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. Flat owners in Poole will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some situations you may not qualify. There are also strict deadlines and steps to follow once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| 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 secure guidance from a conveyancing solicitor and surveyor 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 Omar, came dangerously close to the eighty-year mark with the lease on his first floor flat in Poole. Having bought his home 18 years previously, the lease term was of no interest. Fortunately, he noticed he would imminently be paying an inflated amount for Extending the lease. Omar extended the lease just under the wire in September. Omar and the landlord ultimately settled on an amount of £6,000 . If the lease had dipped to less than 80 years, the premium would have increased by a minimum £1,075.
Mr Gabriel Nelson owned a basement flat in Poole in April 2006. The question was if we could approximate the price could be for a 90 year extension to my lease. Identical properties in Poole with a long lease were worth £166,400. The average ground rent payable was £60 invoiced per annum. The lease came to a finish on 15 September 2080. Considering the 54 years remaining we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus costs.
Mrs S Davis moved into a studio flat in Poole in January 2001. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative homes in Poole with an extended lease were valued about £227,800. The average amount of ground rent was £45 billed yearly. The lease lapsed in 2091. Taking into account 65 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.