Chances are that where you own a flat in Poole you actually own a long leasehold interest over your property
Leasehold properties in Poole with over one hundred years remaining 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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 |
| 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. |
The conveyancing solicitors that we work with handle Poole lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Two years ago Jayden, came very near to the eighty-year threshold with the lease on his first floor apartment in Poole. In buying his home two decades ago, the unexpired term was of minimal relevance. Fortunately, it dawned on him that he would soon be paying way over the odds for Extending the lease. Jayden arranged for a lease extension at the eleventh hour in April. Jayden and the landlord who owned the flat above eventually settled on sum of £5,500 . If the lease had slid lower than 80 years, the price would have become more costly by at least £1,075.
Last Winter we were called by Dr Y Mason , who completed a recently refurbished flat in Poole in October 2008. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Poole with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease concluded in 2104. Given that there were 78 years unexpired we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.
Mr and Mrs. U Fournier acquired a first floor apartment in Poole in April 1997. The question was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical flats in Poole with a long lease were valued about £186,000. The average amount of ground rent was £65 billed every twelve months. The lease lapsed in 2084. Considering the 58 years unexpired we calculated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 plus expenses.