When it comes to residential leasehold premises in Poynton, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are less than 80 years left. Residents in Poynton with a lease approaching 81 years left should seriously consider extending it sooner rather than later. Once the lease term has less than eighty years outstanding, under the current legislation the landlord can calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Poynton with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Santander | |
| Yorkshire Building Society |
The lawyers that we work with procure Poynton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Sam was the the leasehold proprietor of a 2 bedroom flat in Poynton being marketed with a lease of just over sixty years outstanding. Sam on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sam to invoke his statutory right. Sam procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last year we were contacted by Ms Hannah Hall , who bought a ground floor apartment in Poynton in November 2004. The question was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Identical flats in Poynton with an extended lease were worth £275,000. The average ground rent payable was £55 collected yearly. The lease ended in 2102. Considering the 76 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
In 2012 we were contacted by Dr R Harris who, having was assigned a lease of a one bedroom flat in Poynton in November 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Identical premises in Poynton with 100 year plus lease were worth £176,200. The average amount of ground rent was £65 invoiced every twelve months. The lease came to a finish in 2082. Given that there were 56 years remaining we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of expenses.