Unfortunately 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 taken for granted in the first few years due to the loss of value being disguised by increases in the Poynton property market.Where your lease has approximately ninety years left, you should 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 dips below eighty years - otherwise a higher premium will be due. Most leasehold owners in Poynton will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Poynton with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Poynton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Poynton valuers.
Two years ago Harvey, started to get near to the 80-year mark with the lease on his basement apartment in Poynton. In buying his flat two decades ago, the length of the lease was of minimal significance. Luckily, he recognised he needed to take steps soon on a lease extension. Harvey extended the lease just under the wire last June. Harvey and the landlord who owned the flat above subsequently agreed on sum of £5,500 . If the lease had dipped to less than eighty years, the amount would have gone up by at least £950.
Ms Natasha Alexander completed a studio flat in Poynton in January 2004. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative residencies in Poynton with 100 year plus lease were worth £200,800. The mid-range ground rent payable was £65 billed yearly. The lease elapsed on 17 August 2086. Considering the 60 years left we approximated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 plus costs.
Last Autumn we were contacted by Mr and Mrs. P Phillips , who was assigned a lease of a basement apartment in Poynton in November 1998. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Identical homes in Poynton with an extended lease were in the region of £255,000. The average amount of ground rent was £50 collected monthly. The lease concluded in 2097. Considering the 71 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.