The nearer a residential lease in Poole gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of 99 years to run then this decrease may be negligible however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Most flat owners in Poole will meet the qualifying criteria; that being said a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Poole leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Ollie, came precariously close to the eighty-year threshold with the lease on his two bedroom flat in Poole. In buying his property twenty years previously, the unexpired term was of little bearing. Thankfully, he recognised he would soon be paying an escalated premium for Extending the lease. Ollie extended the lease at the eleventh hour in August. Ollie and the freeholder eventually agreed on the final figure of £6,000 . If the lease had dropped to less than 80 years, the price would have escalated by at least £975.
Mr and Mrs. L Jones purchased a purpose-built flat in Poole in September 2010. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Poole with an extended lease were valued around £285,000. The mid-range ground rent payable was £55 collected yearly. The lease terminated on 13 August 2106. Taking into account 80 years remaining we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.
Last month we were called by Dr D Sharif , who acquired a one bedroom flat in Poole in May 2007. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable homes in Poole with 100 year plus lease were valued around £200,800. The average amount of ground rent was £65 invoiced every twelve months. The lease elapsed on 22 February 2086. Considering the 60 years left we approximated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 not including expenses.