Why you should start your Poundbury lease extension

Main reasons to commence your Poundbury lease extension today:

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

On the balance of probabilities where you own a flat in Poundbury you actually own a long leasehold interest over your property

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

It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Mortgage lenders may not issue a mortgage on a short lease

Most mortgage lenders have tightened lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly below 75 years as they are regarded as deficient for lending purposes.

What makes us experts in Poundbury lease extensions?

The lawyers that we work with undertake Poundbury lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.

Poundbury Lease Extension Example Cases:

Jude, Poundbury, Dorset,

Jude owned a high value flat in Poundbury being marketed with a lease of fraction over 61 years unexpired. Jude on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Jude to invoke his statutory right. Jude procured expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.

Poundbury case:

In 2010 we were called by Mr O Ward who, having owned a garden apartment in Poundbury in February 2009. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar residencies in Poundbury with 100 year plus lease were in the region of £275,000. The average ground rent payable was £65 collected annually. The lease ended in 2094. Considering the 68 years outstanding we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of fees.

Poundbury case:

Last Spring we were phoned by Ms Abbie Martin , who owned a recently refurbished flat in Poundbury in January 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Similar flats in Poundbury with 100 year plus lease were in the region of £208,600. The average ground rent payable was £60 invoiced quarterly. The lease finished in 2083. Given that there were 57 years unexpired we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 plus fees.