It’s a harsh truth that a Poynton residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Poynton property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be payable. The majority of flat owners in Poynton will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Poynton can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Poynton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Arthur owned a high value apartment in Poynton on the market with a lease of fraction over 59 years unexpired. Arthur on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Arthur to invoke his statutory right. Arthur procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Mr and Mrs. O Green purchased a studio apartment in Poynton in June 2012. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative homes in Poynton with an extended lease were worth £193,400. The mid-range ground rent payable was £65 billed monthly. The lease concluded on 5 July 2084. Considering the 59 years unexpired we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.
Mr and Mrs. A Díaz completed a first floor flat in Poynton in May 1995. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Identical homes in Poynton with a long lease were worth £255,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended on 14 March 2095. Considering the 70 years left we estimated the premium to the freeholder for the lease extension to be within £10,500 and £12,000 exclusive of expenses.