The re-sale value of a leasehold property in Poynton depends on how many years the lease has remaining. If it is close to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be finalised ahead of the eighty year threshold. Statute entitles Poynton qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Yorkshire Building Society | 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. |
Irrespective of whether you are a tenant or a freeholder in Poynton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Poynton valuers.
Callum was the the leasehold owner of a high value apartment in Poynton being marketed with a lease of just over sixty years unexpired. Callum on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Callum to exercise his statutory right. Callum procured expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Last Summer we were approach by Mr Eliot Laurent , who acquired a garden apartment in Poynton in March 2007. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical residencies in Poynton with an extended lease were valued about £166,400. The mid-range amount of ground rent was £60 invoiced annually. The lease concluded on 4 January 2080. Given that there were 54 years left we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus legals.
In 2012 we were phoned by Ms A Ali who, having bought a one bedroom apartment in Poynton in March 2001. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparable residencies in Poynton with 100 year plus lease were worth £227,800. The average amount of ground rent was £45 collected per annum. The lease elapsed in 2091. Considering the 65 years outstanding we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.