When it comes to domestic leasehold property in Poynton, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years left. Leasehold owners in Poynton with a lease drawing near to 81 years left should seriously think of extending it without delay. Once a lease has fewer than 80 years left, under the current legislation the freeholder can calculate and levy a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Regardless of whether you are a tenant or a landlord in Poynton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Poynton valuers.
Caleb owned a conversion flat in Poynton on the market with a lease of just over sixty years left. Caleb informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Caleb to invoke his statutory right. Caleb procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Dr C James owned a garden apartment in Poynton in September 2000. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical properties in Poynton with a long lease were worth £242,600. The mid-range ground rent payable was £45 collected monthly. The lease came to a finish in 2092. Having 67 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of fees.
Mr Caleb Ramírez took over the lease of a garden apartment in Poynton in April 2005. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable homes in Poynton with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £55 billed per annum. The lease elapsed in 2103. Given that there were 78 years left we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.