Main reasons to commence your Poplar lease extension

Why you should commence your Poplar lease extension today:

Increase your lease and increase your Poplar property value

Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Poplar. Inevitably, the length of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the residence needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Poplar have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give due consideration before delaying your Poplar lease extension. Putting off that expense now simply increases the price you will ultimately have to pay to extend your lease

Poplar property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Poplar with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.

Lenders will not issue a mortgage with a short lease

The trend since the credit crunch has been for banks to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks would grant a mortgage on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Poplar lease extensions?

Regardless 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 in-depth market knowledge and the close ties they enjoy with Poplar valuers.

Poplar Lease Extension Case Summaries:

Cameron, Poplar, London

Last October Cameron, started to get near to the 80-year threshold with the lease on his two bedroom flat in Poplar. Having purchased his property 19 years previously, the unexpired term was of minimal interest. Thankfully, he became aware that he needed to take steps soon on a lease extension. Cameron arranged for a lease extension just under the wire in August. Cameron and the freeholder via the managing agents ultimately agreed on sum of £5,000 . If the lease had gone to less than eighty years, the figure would have gone up by at least £1,125.

Poplar case:

Last year we were e-mailed by Mr and Mrs. C Taylor , who moved into a first floor apartment in Poplar in November 2009. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Comparative premises in Poplar with a long lease were worth £255,000. The average amount of ground rent was £50 billed yearly. The lease concluded in 2096. Taking into account 70 years remaining we approximated the premium to the freeholder to extend the lease to be between £10,500 and £12,000 plus fees.