Main reasons to commence your Poundbury lease extension

Top reasons for lease extension now:

Increase your lease and increase your Poundbury property value

Chances are that where you own a flat in Poundbury you actually own a long leasehold interest over your property

An extended lease is almost the same value as a freehold

Leasehold properties in Poundbury with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.

Lenders may not lend on a short lease

The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get concerned at around 75 years. This may be problematic once you come to dispose of or remortgage your flat as it will be effectively unmortgageable. Even though you might not have an immediate intention to sell but when you do your purchaser will need to hold off for a couple of years before they can commence the legal procedures for a lease extension.

Get in touch with one of our Poundbury lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Poundbury,the lease extension solicitors that we work with will always be happy 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.

Poundbury Lease Extension Case Summaries:

Olivia, Poundbury, Dorset,

Off the back of lengthy discussions with the freeholder of her purpose-built flat in Poundbury, Olivia started the lease extension process just as her lease was coming close to the all-important 80-year mark. The transaction was finalised in May 2013. The freeholder’s fees were kept to an absolute minimum.

Poundbury case:

Mr L Bertrand moved into a garden flat in Poundbury in January 1999. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative premises in Poundbury with a long lease were valued about £225,800. The mid-range ground rent payable was £60 billed quarterly. The lease ended on 24 November 2086. Having 60 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £24,700 and £28,600 not including costs.

Poundbury case:

Dr J Evans moved into a one bedroom apartment in Poundbury in November 2003. The question was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparative homes in Poundbury with a long lease were in the region of £210,000. The average ground rent payable was £50 invoiced per annum. The lease finished in 2106. Considering the 80 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.