With a long leasehold premises in Poole, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are less than 80 years left. Anyone in Poole with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once the lease term has less than eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and charge a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Poole with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you better control over the value of your Poole leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Harry owned a studio flat in Poole on the market with a lease of just over sixty years remaining. Harry on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Harry to invoke his statutory right. Harry procured expert advice and secured an acceptable deal informally and readily saleable.
In 2009 we were phoned by Mr Joshua Evans who, having took over the lease of a basement apartment in Poole in July 2011. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Similar premises in Poole with an extended lease were in the region of £235,200. The average amount of ground rent was £45 billed monthly. The lease concluded in 2092. Considering the 66 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.
In 2009 we were called by Dr P André who, having was assigned a lease of a basement flat in Poole in August 1999. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparable residencies in Poole with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected annually. The lease end date was in 2103. Considering the 77 years left we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.