The market value of a leasehold property in Poplar depends on how long the lease has remaining. If it is close to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that formalities can be finalised ahead of the eighty year mark. Statute entitles Poplar qualifying lessees to an additional term of ninety years in addition to the remaining term, at a notional rent (zero ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Poplar with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Halifax | |
| Leeds Building Society | |
| National Westminster Bank | |
| Santander |
Regardless of whether you are a tenant or a landlord in Poplar,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Poplar valuers.
Subsequent to protracted correspondence with the freeholder of her garden flat in Poplar, Rachael initiated the lease extension process just as her lease was nearing the all-important 80-year threshold. The lease extension completed in June 2011. The landlord’s fees were restricted to slightly above four hundred pounds.
In 2011 we were e-mailed by Mr H López who, having took over the lease of a one bedroom apartment in Poplar in June 2012. The question was if we could estimate the price would be to prolong the lease by an additional years. Identical premises in Poplar with 100 year plus lease were valued around £265,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease expiry date was in 2100. Given that there were 74 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a Poplar residence 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 residue of the current lease was 101.61 years.