The only way is down when it comes to Poundbury lease terms. Poundbury properties that have a lease term fewer than 80 years will drop in value even faster, and the cost to extend your lease will increase.
Leasehold properties in Poundbury with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service will provide you enhanced control over the value of your Poundbury leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the freeholder of her studio flat in Poundbury, Danielle initiated the lease extension process as the 80 year deadline was rapidly nearing. The transaction was finalised in September 2011. The landlord’s costs were negotiated to below 500 pounds.
Mr and Mrs. L Howard took over the lease of a basement flat in Poundbury in March 2003. The question was if we could approximate the premium could be for a 90 year extension to my lease. Identical premises in Poundbury with a long lease were in the region of £260,200. The mid-range amount of ground rent was £65 billed monthly. The lease elapsed in 2091. Taking into account 66 years left we approximated the premium to the landlord for the lease extension to be within £15,200 and £17,600 not including legals.
In 2013 we were approached by Ms Alice Garcia who, having purchased a basement flat in Poundbury in August 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Poundbury with a long lease were valued about £198,800. The mid-range amount of ground rent was £55 collected per annum. The lease expired on 10 April 2080. Having 55 years remaining we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of professional charges.