With a long leasehold premises in Poundbury, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Residents in Poundbury with a lease drawing near to 81 years remaining should seriously think of extending it sooner as opposed to later. When the lease term has less than eighty years remaining, under the relevant statute the freeholder can calculate and charge a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Skipton Building Society |
Irrespective of whether you are a tenant or a landlord in Poundbury,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Poundbury valuers.
Edward owned a high value flat in Poundbury on the market with a lease of just over sixty years unexpired. Edward informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Edward to invoke his statutory right. Edward procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2014 we were called by Mr and Mrs. M Baker who, having took over the lease of a newly refurbished apartment in Poundbury in January 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable homes in Poundbury with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 invoiced monthly. The lease terminated in 2098. Having 72 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 plus costs.
Mr B Hall was assigned a lease of a recently refurbished apartment in Poundbury in October 2001. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparative homes in Poundbury with 100 year plus lease were valued about £233,200. The mid-range ground rent payable was £60 billed monthly. The lease finished in 2087. Having 61 years unexpired we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 not including costs.