For those whose Poundbury home is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Leeds Building Society | |
| Santander | |
| The Mortgage Works | |
| Yorkshire Building Society |
Lease extensions in Poundbury can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Poundbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harvey was the the leasehold owner of a conversion apartment in Poundbury on the market with a lease of a little over sixty years remaining. Harvey on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Harvey to exercise his statutory right. Harvey procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Last Autumn we were contacted by Mr Ibrahim Sharif , who moved into a purpose-built apartment in Poundbury in November 2000. We are asked if we could estimate the premium would be to extend the lease by an additional years. Identical premises in Poundbury with 100 year plus lease were valued about £206,200. The average amount of ground rent was £60 invoiced monthly. The lease end date was on 8 May 2082. Given that there were 56 years outstanding we estimated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including expenses.
Last Summer we were called by Mrs P Gray , who owned a studio apartment in Poundbury in October 1998. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Poundbury with an extended lease were valued around £300,000. The mid-range amount of ground rent was £50 invoiced annually. The lease terminated in 2102. Given that there were 76 years unexpired we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.