Poynton leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard 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 mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and procedures to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Poynton with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Poynton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Harry, came seriously near to the eighty-year threshold with the lease on his studio flat in Poynton. In buying his home two decades ago, the length of the lease was of no significance. by good luck, he became aware that he would soon be paying an inflated amount for a lease extension. Harry arranged for a lease extension just under the wire in August. Harry and the freeholder via the management company in the end agreed on a premium of £5,500 . If the lease had fallen to less than eighty years, the premium would have become more exhorbitant by at least £925.
In 2012 we were called by Ms L Dupont who, having completed a ground floor flat in Poynton in January 1998. The dilemma was if we could approximate the price would be for a ninety year lease extension. Identical flats in Poynton with an extended lease were valued around £280,000. The average amount of ground rent was £55 collected per annum. The lease terminated on 28 January 2103. Taking into account 78 years outstanding we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.
Last Christmas we were phoned by Mr Milo Bennett , who purchased a studio apartment in Poynton in April 1997. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar homes in Poynton with 100 year plus lease were in the region of £186,000. The average ground rent payable was £65 billed yearly. The lease came to a finish in 2083. Having 58 years remaining we approximated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of costs.