Top reasons for Poole lease extension

Top reasons for lease extension now:

Increase your lease and increase your Poole property value

The re-sale value of a leasehold property in Poole is impacted by how long the lease has left to run. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be addressed prior to the 80 year threshold. Statute entitles Poole qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.

Lending institutions may decide not to grant a mortgage with a short lease

The trend since over the last decade has been for banks to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the unexpired lease term required by banks has increased. In the past banks were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Poole lease extension solicitors or enfranchisement solicitors

Retaining our service will provide you increased control over the value of your Poole leasehold, as your property will be more valuable and marketable in relation to the 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.

Poole Lease Extension Example Cases:

Jamie, Poole, Dorset

In 2014 Jamie, came perilously near to the eighty-year threshold with the lease on his two bedroom apartment in Poole. Having purchased his home two decades ago, the unexpired term was of little interest. Thankfully, he realised he needed to take steps soon on a lease extension. Jamie extended the lease at the eleventh hour in June. Jamie and the freeholder via the managing agents in the end settled on a premium of £6,000 . If he had missed the deadline, the amount would have become more exhorbitant by a minimum £925.

Poole case:

Last year we were e-mailed by Mr and Mrs. K Watson , who purchased a one bedroom flat in Poole in September 2000. The question was if we could approximate the premium would be for a 90 year lease extension. Identical premises in Poole with 100 year plus lease were worth £264,000. The mid-range ground rent payable was £60 collected yearly. The lease termination date was in 2079. Having 53 years left we estimated the premium to the landlord for the lease extension to be between £37,100 and £42,800 plus costs.

Poole case:

Mr and Mrs. T Garcia completed a studio apartment in Poole in October 2012. The question was if we could approximate the premium could be for a 90 year lease extension. Similar properties in Poole with a long lease were valued around £220,400. The mid-range ground rent payable was £45 collected quarterly. The lease elapsed on 22 February 2090. Having 64 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 not including fees.