Main reasons to commence your Poplar lease extension

Top reasons for lease extension now:

Increase your lease and increase your Poplar property value

Poplar leases on residential deteriorating in value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be payable. Leasehold owners in Poplar will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.

An extended lease is almost the same value as a freehold

It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lenders may decide not to loan monies with a short lease

Lending institutions have set criteria when lending funds charged on leasehold homes. Many will simply refuse lend at all once the residual lease term drops under a certain unexpired lease term. Many Banks and Building Societies will not consider property with a remaining below 75 years as acceptable security. As well as this being important when selling, it is also relevant if you are intending to refinance your Poplar home.

Get in touch with one of our Poplar lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Poplar,the lease extension solicitors 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:

Jack, Poplar, London

16 months ago Jack, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Poplar. In buying his home twenty years previously, the lease term was of minimal relevance. As luck would have it, he noticed he would imminently be paying an escalated premium for a lease extension. Jack extended the lease at the eleventh hour in May. Jack and the freeholder eventually settled on a premium of £6,000 . If he not met the deadline, the price would have escalated by a minimum £875.

Poplar case:

Ms A Morel completed a first floor apartment in Poplar in October 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable premises in Poplar with 100 year plus lease were valued around £280,000. The average amount of ground rent was £55 collected every twelve months. The lease came to a finish in 2104. Considering the 78 years left we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.