The closer a residential lease in Poole nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, over one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending sooner as opposed to later. Most flat owners in Poole will meet the qualifying criteria; however a lawyer will be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Poole with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
Engaging our service gives you enhanced control over the value of your Poole leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Zachary was the the leasehold owner of a studio apartment in Poole on the market with a lease of just over 59 years unexpired. Zachary on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Zachary to exercise his statutory right. Zachary procured expert advice and secured an acceptable deal without going to tribunal and sell the flat.
Last year we were phoned by Mrs Katherine Wright , who moved into a recently refurbished apartment in Poole in November 2001. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Comparative properties in Poole with 100 year plus lease were in the region of £191,000. The average amount of ground rent was £65 collected every twelve months. The lease terminated in 2083. Considering the 58 years outstanding we calculated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of expenses.
Dr Bethan Murphy was assigned a lease of a garden apartment in Poole in July 2009. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar residencies in Poole with a long lease were in the region of £250,000. The average ground rent payable was £50 invoiced monthly. The lease elapsed in 2094. Having 69 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.