The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Poole have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Poole lease extension. Shelving that expense today simply escalates the premium you will ultimately be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Lease extensions in Poole can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in lease extensions.
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 a wealth of experience dealing with Poole lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the landlord of her garden apartment in Poole, Emily commenced the lease extension process as the 80 year deadline was rapidly advancing. The legal work completed in September 2010. The landlord’s costs were kept to an absolute minimum.
Ms F Patel moved into a garden flat in Poole in June 1999. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparative residencies in Poole with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 billed per annum. The lease lapsed on 9 March 2103. Taking into account 77 years left we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
Last Summer we were phoned by Dr Ryan Mason , who bought a one bedroom flat in Poole in September 2008. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable premises in Poole with an extended lease were valued around £183,600. The mid-range ground rent payable was £65 billed annually. The lease ended in 2083. Given that there were 57 years unexpired we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus professional charges.