With a residential leasehold premises in Poole, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than eighty years remaining. Leasehold owners in Poole with a lease drawing near to 81 years left should seriously think of extending it without delay. Once the lease term has less than 80 years outstanding, under the relevant legislation the freeholder can calculate and levy a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Poole leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the freeholder of her purpose-built flat in Poole, Grace initiated the lease extension process just as the lease was coming close to the crucial 80-year threshold. The transaction was finalised in May 2012. The landlord’s fees were kept to an absolute minimum.
In 2012 we were phoned by Mr Oscar Green who, having took over the lease of a one bedroom apartment in Poole in June 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Poole with a long lease were valued around £260,000. The average ground rent payable was £50 invoiced annually. The lease came to a finish in 2096. Taking into account 72 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
Mr T Harris bought a one bedroom apartment in Poole in August 2002. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative flats in Poole with an extended lease were in the region of £261,600. The average ground rent payable was £60 billed quarterly. The lease ran out on 16 May 2076. Taking into account 52 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 plus expenses.