On the balance of probabilities where you own a flat in Poole you actually own a long leasehold interest over your property
Leasehold properties in Poole with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Poole,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Poole valuers.
Leo owned a studio apartment in Poole on the market with a lease of a little over 72 years remaining. Leo informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Leo to exercise his statutory right. Leo obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last Spring we were phoned by Dr Ashleigh White , who owned a garden flat in Poole in November 2004. The question was if we could approximate the premium could be for a ninety year lease extension. Comparable flats in Poole with a long lease were worth £265,000. The mid-range ground rent payable was £50 collected quarterly. The lease terminated on 17 November 2100. Taking into account 74 years unexpired we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
In 2009 we were contacted by Dr Charlie Martínez who, having owned a purpose-built apartment in Poole in July 2009. We are asked if we could estimate the price could be for a ninety year lease extension. Similar properties in Poole with 100 year plus lease were worth £166,400. The average ground rent payable was £60 billed quarterly. The lease ended in 2080. Given that there were 54 years outstanding we calculated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including expenses.