The re-sale value of a leasehold property in Poynton depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. Ideally one should start the lease extension process when a lease still has 82 years remaining so that a lease extension can be finalised prior to the 80 year mark. Leasehold Reform legislation enables Poynton qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Godiva Mortgages | |
| National Westminster Bank | |
| TSB |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
Arthur owned a high value apartment in Poynton being marketed with a lease of fraction over 72 years left. Arthur on an informal basis approached his landlord a well known Bristol-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 an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Arthur to exercise his statutory right. Arthur procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Mr M André purchased a one bedroom apartment in Poynton in November 2010. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical homes in Poynton with a long lease were valued about £264,000. The average amount of ground rent was £60 collected monthly. The lease terminated on 25 June 2079. Taking into account 53 years as a residual term we calculated the premium to the landlord to extend the lease to be within £37,100 and £42,800 plus costs.
Last month we were phoned by Dr T Parker , who bought a recently refurbished apartment in Poynton in November 2012. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Similar residencies in Poynton with a long lease were in the region of £225,400. The mid-range ground rent payable was £45 invoiced every twelve months. The lease came to a finish in 2090. Having 64 years unexpired we estimated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 plus professional charges.