Why you should start your Poundbury lease extension

Main reasons to start your Poundbury lease extension today:

Increase your lease and increase your Poundbury property value

For those whose Poundbury home is held on a long lease, the message is clear – if nothing is done, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension.

An extended lease has roughly the same value as a freehold

Leasehold properties in Poundbury with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.

Lending institutions will not issue a mortgage with a short lease

Banks and Building Societies have specific criteria when loaning funds charged on leasehold homes. Some will simply refrain from lending at all once the remaining lease term drops under a specified unexpired lease term. Many Lending institutions will not regard property with an unexpired term of less than seventy years as adequate security. In addition to this being important when selling, it is also relevant if you are seeking to refinance your Poundbury property.

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

Lease extensions in Poundbury can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Poundbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Poundbury Lease Extension Example Cases:

Louise, Poundbury, Dorset,

Following protracted discussions with the landlord of her one bedroom apartment in Poundbury, Louise started the lease extension process just as the lease was approaching the all-important 80-year deadline. The legal work was finalised in June 2010. The freeholder’s charges were kept to an absolute minimum.

Poundbury case:

In 2013 we were called by Mr Sam Adams who, having bought a garden apartment in Poundbury in September 1996. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable residencies in Poundbury with an extended lease were valued around £250,400. The mid-range amount of ground rent was £65 billed yearly. The lease expired in 2090. Considering the 64 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of fees.

Poundbury case:

In 2013 we were phoned by Dr V Morris who, having took over the lease of a ground floor flat in Poundbury in June 2009. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparative premises in Poundbury with an extended lease were worth £189,000. The average amount of ground rent was £55 billed quarterly. The lease terminated on 8 March 2079. Taking into account 53 years left we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including expenses.