When it comes to residential leasehold property in Poole, you are in fact renting 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 a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are less than eighty years left. Residents in Poole with a lease nearing 81 years left should seriously consider extending it without delay. Once a lease has under eighty years left, under the relevant Act the freeholder can calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Poole can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer 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 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.
Off the back of lengthy negotiations with the freeholder of her leasehold flat in Poole, Victoria commenced the lease extension process as the eighty year mark was fast nearing. The transaction completed in October 2011. The freeholder’s costs were kept to an absolute minimum.
Last month we were contacted by Mr Nathan Bailey , who took over the lease of a first floor flat in Poole in July 1996. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable homes in Poole with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 collected yearly. The lease concluded on 3 March 2100. Taking into account 75 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
Last Autumn we were contacted by Dr Nicole Bell , who purchased a first floor apartment in Poole in August 1998. We are asked if we could estimate the premium could be for a 90 year lease extension. Identical properties in Poole with 100 year plus lease were worth £168,800. The average ground rent payable was £60 invoiced annually. The lease terminated in 2080. Taking into account 55 years remaining we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including professional charges.