Chances are that if you own a flat in Poplar you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
Retaining our service gives you enhanced control over the value of your Poplar leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Matthew owned a high value apartment in Poplar being sold with a lease of a few days over 72 years remaining. Matthew informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Matthew to invoke his statutory right. Matthew obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Mr Cameron Hernández moved into a one bedroom apartment in Poplar in January 1998. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Comparable residencies in Poplar with a long lease were worth £285,000. The mid-range amount of ground rent was £55 billed per annum. The lease finished in 2105. Having 79 years left we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Poplar flat 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 was in relation to 3 flats. The unexpired lease term was 101.61 years.