As the length of the unexpired term of a Poole domestic lease lessens so does its value and therefore the value of your property. If the lease has, beyond 99 years remaining then this decrease may be negligible however there will become a point in time when a lease has under 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 rational as to why you should consider extending sooner than later. Many flat owners in Poole will meet the qualifying criteria; that being said a lawyer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Poole can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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 Poole lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aarav owned a high value flat in Poole on the market with a lease of fraction over 59 years remaining. Aarav informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Aarav to exercise his statutory right. Aarav obtained expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Ms Kelsey Moore purchased a one bedroom flat in Poole in May 2010. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable homes in Poole with an extended lease were worth £227,800. The mid-range ground rent payable was £45 billed monthly. The lease came to a finish on 20 January 2090. Having 65 years left we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
In 2009 we were approached by Mr D Ricardo who, having took over the lease of a purpose-built apartment in Poole in November 1995. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Similar flats in Poole with an extended lease were worth £275,000. The mid-range ground rent payable was £55 billed monthly. The lease ran out in 2101. Having 76 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.