With a residential leasehold property in Poole, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than 80 years remaining. Residents in Poole with a lease drawing near to 81 years left should seriously think of extending it sooner as opposed to later. When a lease has below eighty years outstanding, under the relevant Act the freeholder can calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
Subsequent to unsuccessful discussions with the freeholder of her garden apartment in Poole, Chelsea started the lease extension process just as the lease was coming close to the critical 80-year threshold. The lease extension was finalised in April 2014. The landlord’s fees were negotiated to a tad over 500 GBP.
In 2009 we were e-mailed by Ms G Martin who, having was assigned a lease of a garden apartment in Poole in July 2008. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparative homes in Poole with 100 year plus lease were valued about £260,000. The average ground rent payable was £50 collected per annum. The lease ran out in 2098. Having 72 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
Dr Reuben Lefebvre moved into a basement flat in Poole in August 1996. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical residencies in Poole with an extended lease were in the region of £256,600. The mid-range ground rent payable was £60 invoiced monthly. The lease ended on 14 July 2078. Considering the 52 years outstanding we estimated the premium to the landlord to extend the lease to be within £39,000 and £45,000 not including expenses.