Poynton Lease Extension - Free Consultation

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Why you should start your Poynton lease extension


Top reasons for lease extension now:

Increase your lease and increase your Poynton property value

The re-sale value of a leasehold property in Poynton is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be addressed in advance of the 80 year mark. Current legislation entitles Poynton qualifying lessees to acquire a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

Poynton property with a lease extension is almost the same value as a freehold

Leasehold residencies in Poynton with in excess of 100 years unexpired on the lease are often regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.

Banks and Building Societies may not issue a mortgage on a short lease

Many banks and building societies insist on a lengthy amount of time left on any leasehold residence before they will consider it as adequate security. Even if you don't need a mortgage, you should bear in mind that it is likely that someone intending to buy your property in the future might well do, so if they can't secure a mortgage, then the market price of the property could suffer. In the last decade the majority of banks and building societies have increased the required minimum lease length that they are prepared to accept

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Birmingham Midshires Minimum 70 years from the date of the mortgage.
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.
Royal Bank of Scotland Mortgage term plus 30 years.

Get in touch with one of our Poynton lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Poynton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Poynton valuers.

Poynton Lease Extension Example Cases:

Kian, Poynton, Cheshire,

Kian was the the leasehold proprietor of a high value apartment in Poynton being marketed with a lease of just over 61 years left. Kian informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Kian to invoke his statutory right. Kian obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.

Poynton case:

Last Spring we were e-mailed by Mr and Mrs. W Smith , who bought a one bedroom flat in Poynton in May 2010. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical flats in Poynton with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease end date was in 2104. Having 79 years remaining we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.

Poynton case:

In 2013 we were approached by Dr Lydia White who, having took over the lease of a studio flat in Poynton in July 2003. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Comparable flats in Poynton with an extended lease were valued around £193,400. The mid-range ground rent payable was £65 collected every twelve months. The lease elapsed on 21 February 2084. Taking into account 59 years outstanding we approximated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 plus fees.