The re-sale value of a leasehold property in Poplar is impacted by how long the lease has left to run. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to commence the lease extension process when the lease still has 82 years to run so that all matters can be concluded in advance of the eighty year threshold. Statute enables Poplar qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 better control over the value of your Poplar leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of protracted discussions with the landlord of her two bedroom apartment in Poplar, Abbie initiated the lease extension process just as her lease was approaching the crucial eighty-year mark. The transaction was finalised in August 2006. The freeholder’s fees were restricted to a tad over 700 pounds.
Mrs W Sharif completed a purpose-built apartment in Poplar in April 1998. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative properties in Poplar with 100 year plus lease were in the region of £198,400. The mid-range ground rent payable was £65 billed quarterly. The lease expired on 17 March 2082. Considering the 59 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Poplar property 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 lease term was 101.61 years.