Top reasons for Poplar lease extension

Main reasons to commence your Poplar lease extension today:

A Poplar leasehold property depreciates with the years remaining on the lease.

With a long leasehold premises in Poplar, you are actually buying a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are fewer than 80 years remaining. Residents in Poplar with a lease drawing near to 81 years left should seriously think of extending it without delay. Once a lease has under eighty years remaining, under the current Act the freeholder is entitled to calculate and levy a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold premises in Poplar with over one hundred years unexpired 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.

Mortgage lenders may decide not to lend with a short lease

Mortgage companies do not like short residential leases. You are likely to experience problems where you want to sell your flat in Poplar if the unexpired lease term is below the criteria set by the majority of mortgage companies. Different mortgage companies have different requirements but on the whole theyrequire a minimum remaining lease term of 65 years.

Why use us for your lease extension in Poplar?

Irrespective of whether you are a tenant or a freeholder in Poplar,the lease extension solicitors that we work with will always be willing 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:

Lydia, Poplar, London,

Off the back of lengthy negotiations with the landlord of her first floor flat in Poplar, Lydia commenced the lease extension process as the eighty year deadline was fast approaching. The legal work completed in February 2008. The landlord’s costs were restricted to under five hundred GBP.

Poplar case:

Last November we were approach by Dr J Taylor , who bought a garden apartment in Poplar in March 2012. The question was if we could estimate the price would be to prolong the lease by 90 years. Similar premises in Poplar with an extended lease were valued around £264,000. The average ground rent payable was £60 invoiced yearly. The lease expired in 2078. Having 53 years remaining we approximated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of professional charges.