When it comes to residential leasehold premises in Poole, you effectively rent it for a certain amount of time. Modern flat leases are usually granted 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. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are less than 80 years left. Leasehold owners in Poole with a lease approaching 81 years left should seriously think of extending it without delay. When the lease term has under 80 years left, under the current statute the landlord can calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Poole with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
| 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. |
Lease extensions in Poole can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in this area.
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 in-depth market knowledge 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.
After protracted correspondence with the freeholder of her first floor flat in Poole, Chelsea started the lease extension process as the eighty year threshold was quickly nearing. The transaction was concluded in September 2010. The landlord’s charges were restricted to a tad over 450 pounds.
Mr and Mrs. K Wood acquired a ground floor flat in Poole in July 1996. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical residencies in Poole with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 collected monthly. The lease concluded on 19 June 2096. Given that there were 71 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
Last Winter we were e-mailed by Dr M Pérez , who owned a one bedroom apartment in Poole in August 2011. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Comparable homes in Poole with 100 year plus lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed monthly. The lease ran out in 2076. Taking into account 51 years left we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 plus professional charges.