As the length of the unexpired term of a Poole domestic lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of one hundred years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner than later. The majority of flat owners in Poole will meet the qualifying criteria; that being said a conveyancer will be able to confirm whether you are eligible for a lease extension. 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 conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service gives you increased control over the value of your Poole leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Joshua, started to get near to the eighty-year threshold with the lease on his two bedroom apartment in Poole. In buying his home two decades ago, the length of the lease was of minimal bearing. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Joshua arranged for a lease extension at the eleventh hour in August. Joshua and the landlord who owned the flat above eventually settled on a premium of £6,000 . If he not met the deadline, the sum would have escalated by at least £1,100.
Dr D Bell purchased a first floor apartment in Poole in August 2006. The question was if we could approximate the price could be to extend the lease by 90 years. Similar homes in Poole with a long lease were worth £245,000. The average amount of ground rent was £50 billed annually. The lease ran out on 10 May 2093. Considering the 68 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.
Dr I Walker moved into a ground floor flat in Poole in January 2012. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable homes in Poole with 100 year plus lease were valued around £285,000. The mid-range ground rent payable was £55 collected monthly. The lease elapsed on 5 October 2104. Having 79 years unexpired we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.