There is no doubt about it a leasehold property in Poole is a wasting asset as a result of the shortening lease. If the lease has, more than 99 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Poole will meet the qualifying criteria; however a conveyancer will be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Poole leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of protracted negotiations with the freeholder of her two bedroom apartment in Poole, Victoria commenced the lease extension process as the 80 year threshold was rapidly advancing. The legal work was concluded in January 2006. The freeholder’s charges were negotiated to slightly above 450 GBP.
Mr and Mrs. W Wood bought a ground floor apartment in Poole in November 1997. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative residencies in Poole with a long lease were valued around £256,600. The average ground rent payable was £60 billed per annum. The lease elapsed on 10 October 2077. Given that there were 52 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 exclusive of legals.
Dr B Phillips completed a ground floor flat in Poole in October 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar flats in Poole with 100 year plus lease were worth £218,000. The average ground rent payable was £45 collected annually. The lease ran out on 24 January 2088. Considering the 63 years remaining we estimated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of legals.