Main reasons to commence your Poplar lease extension

Top reasons for lease extension now:

Increase your lease and increase your Poplar property value

For those whose Poplar property is held on a long lease, the message is clear – if you do nothing, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension.

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

It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may decide not to loan monies with a short lease

Many mortgage companies insist on a lengthy amount of time left on any leasehold property before they will consider providing a mortgage on it. Regardless of whether you need a mortgage, you should be conscious that it is probable that someone wanting to buy your property in the future might well do, so where they are unable to get a mortgage, then the value of the property could suffer. In the last decade most mortgage lenders have increased the required minimum lease length that they are prepared to lend on

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

Irrespective of whether you are a tenant or a landlord in Poplar,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Poplar valuers.

Poplar Lease Extension Example Cases:

Aarav, Poplar, London,

Aarav owned a studio flat in Poplar being marketed with a lease of just over fifty eight years outstanding. Aarav informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Aarav to exercise his statutory right. Aarav obtained expert advice and was able to make an informed decision and handle with the matter and sell the flat.

Poplar case:

In 2014 we were phoned by Dr Olivia Moore who, having acquired a purpose-built flat in Poplar in June 2000. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparable homes in Poplar with an extended lease were valued about £193,400. The average amount of ground rent was £65 billed monthly. The lease elapsed on 24 April 2085. Having 59 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 plus fees.