Main reasons to commence your Poplar lease extension

Main reasons to start your Poplar lease extension today:

Increase your lease and increase your Poplar property value

Poplar leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Poplar tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Poplar you should see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

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

It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.

Lending institutions will not issue a mortgage with a short lease

Banks and building societies are tightening their criteria and many now require flats to have a minimum of sixty if not seventy years left at the expiry of the mortgage. Given that a number of flats in Poplar were created in the 1950s, 1960s and 1970s as a result many now require lease extensions if they wish to obtain a mortgage.

What makes us experts in Poplar lease extensions?

Irrespective of whether you are a tenant or a landlord in Poplar,the lease extension experts 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.

Poplar Lease Extension Case Studies:

Rosie, Poplar, London,

In the wake of 9 months of unsuccessful correspondence with the freeholder of her first floor flat in Poplar, Rosie initiated the lease extension process as the eighty year mark was quickly advancing. The transaction was finalised in March 2006. The freeholder’s charges were negotiated to below 450 GBP.

Poplar case:

Mr F Turner completed a newly refurbished flat in Poplar in March 2010. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative residencies in Poplar with 100 year plus lease were valued around £254,200. The mid-range ground rent payable was £60 billed yearly. The lease lapsed in 2077. Given that there were 51 years remaining we calculated the premium to the landlord to extend the lease to be between £43,700 and £50,600 not including fees.