There is no doubt about it a leasehold flat or house in Poplar is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 99 years to run then this decrease may be negligible that being said there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Many flat owners in Poplar will meet the qualifying criteria; nevertheless a conveyancer will be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 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 ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Poplar,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Poplar valuers.
Two years ago George, came precariously close to the eighty-year mark with the lease on his basement apartment in Poplar. In buying his property twenty years previously, the length of the lease was of no importance. As luck would have it, he became aware that he would imminently be paying way over the odds for a lease extension. George was able to extend his lease just ahead of time last August. George and the freeholder ultimately agreed on a premium of £5,500 . If the lease had slid below 80 years, the premium would have escalated by a minimum £875.
In 2012 we were e-mailed by Mr and Mrs. M Laurent who, having took over the lease of a basement flat in Poplar in March 2006. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical properties in Poplar with an extended lease were in the region of £270,000. The mid-range ground rent payable was £55 billed yearly. The lease terminated in 2100. Considering the 75 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a Poplar premises is 12, 14 & 16 Hull Close in May 2010. the Tribunal determined that the premium payable for the acquisition of the freehold to the subject premises was the sum of £18,300 This case affected 3 flats. The remaining number of years on the lease was 101.61 years.