The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Poplar can extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Poplar lease extension. Postponing that expense now simply increases the amount you will eventually have to pay for a lease extension.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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 |
| 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 gives you increased control over the value of your Poplar leasehold, as your property will be more valuable and saleable in relation to the 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.
Two years ago Teddy, started to get near to the eighty-year mark with the lease on his purpose- built flat in Poplar. In buying his home two decades ago, the unexpired term was of little interest. by good luck, he realised he would imminently be paying an escalated premium for Extending the lease. Teddy was able to extend his lease just under the wire last June. Teddy and the landlord who owned the flat above subsequently settled on sum of £5,500 . If the lease had slipped below 80 years, the sum would have gone up by a minimum £875.
In 2011 we were called by Mr and Mrs. S Harris who, having bought a first floor flat in Poplar in February 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Identical residencies in Poplar with a long lease were worth £218,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease finished in 2089. Considering the 63 years remaining we approximated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a Poplar premises is 12, 14 & 16 Hull Close in May 2010. the Tribunal determined that the premium payable for the acquisition of the freehold to the subject premises was the sum of £18,300 This case related to 3 flats. The unexpired lease term was 101.61 years.