Poynton leases on residential deteriorating in value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Poynton will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Poynton,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 Poynton valuers.
Leo owned a conversion apartment in Poynton being sold with a lease of fraction over 59 years outstanding. Leo on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be due on a lease extension were Leo to exercise his statutory right. Leo procured expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.
Last year we were called by Mr J Hall , who owned a purpose-built flat in Poynton in October 1995. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparable flats in Poynton with 100 year plus lease were worth £168,800. The average amount of ground rent was £60 invoiced yearly. The lease came to a finish on 13 October 2080. Taking into account 55 years as a residual term we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
Last Christmas we were called by Ms Natalie Lee , who purchased a one bedroom apartment in Poynton in August 2007. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative premises in Poynton with an extended lease were valued about £235,200. The average ground rent payable was £45 invoiced monthly. The lease termination date was on 5 February 2091. Given that there were 66 years left we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.