Main reasons to commence your Poundbury lease extension

Why you should start your Poundbury lease extension today:

Increase your lease and increase your Poundbury property value

Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Poundbury. Clearly, the length of lease remaining reduces over time. This is often overlooked and only raises itself as an issue when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying leaseholders in Poundbury have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. Please give due consideration before putting off your Poundbury lease extension. Putting off the cost now likely increases the price you will eventually incur for a lease extension

Poundbury property with a lease extension is almost the same value as a freehold

It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.

Banks and Building Societies will not issue a mortgage with a short lease

Banks and building societies are making their criteria more stringent and a meaningful number now expect flats to have at least 60 if not 70 years remaining at the end of the mortgage. Considering a number of flats in Poundbury were created in the 1950s, 1960s and 1970s this means many now need to be extended if they if they are to be mortgageable.

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

Using our service gives you increased control over the value of your Poundbury leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Poundbury Lease Extension Example Cases:

Harry, Poundbury, Dorset,

Harry owned a high value flat in Poundbury being marketed with a lease of fraction over 61 years outstanding. Harry on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be due on a lease extension were Harry to exercise his statutory right. Harry procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.

Poundbury case:

Last year we were phoned by Dr C Anderson , who purchased a studio flat in Poundbury in September 2007. The question was if we could estimate the price would be to prolong the lease by ninety years. Comparable flats in Poundbury with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected per annum. The lease termination date was on 13 February 2078. Taking into account 52 years left we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including professional charges.

Poundbury case:

Last Summer we were phoned by Dr T Collins , who owned a newly refurbished apartment in Poundbury in January 2011. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable premises in Poundbury with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed quarterly. The lease terminated in 2098. Taking into account 72 years unexpired we approximated the premium to the landlord for the lease extension to be between £11,400 and £13,200 plus costs.