The only way is down when it comes to Poundbury lease terms. Poundbury properties that have a residual term less than than 80 years will drop in market price even faster, and the cost of extending your lease will increase.
Leasehold properties in Poundbury with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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. |
Irrespective of whether you are a tenant or a landlord in Poundbury,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Poundbury valuers.
In 2014 Dexter, started to get near to the 80-year mark with the lease on his leasehold flat in Poundbury. In buying his home 19 years ago, the lease term was of little significance. As luck would have it, he realised he would soon be paying an escalated premium for Extending the lease. Dexter extended the lease just under the wire last March. Dexter and the landlord who owned the flat above eventually settled on the final figure of £6,000 . If he failed to meet the deadline, the amount would have gone up by a minimum £850.
Ms Natasha Girard bought a garden flat in Poundbury in March 2012. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative residencies in Poundbury with an extended lease were valued about £205,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ran out on 6 July 2104. Having 78 years outstanding we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.
Last May we were approach by Ms W Evans , who acquired a newly refurbished apartment in Poundbury in March 1999. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparable premises in Poundbury with a long lease were in the region of £267,600. The average amount of ground rent was £65 collected every twelve months. The lease expired on 24 October 2093. Given that there were 67 years left we approximated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 plus expenses.