Poynton leases on residential deteriorating in value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the current lease falls lower than eighty years - otherwise a higher amount will be due. Flat owners in Poynton will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some situations you may not be entitled. There are also strict deadlines and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Poynton,the lease extension solicitors 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.
During the course of the last few months Harrison, came critically close to the 80-year threshold with the lease on his garden apartment in Poynton. Having purchased his flat twenty years ago, the unexpired term was of no relevance. Luckily, he recognised he needed to take steps soon on a lease extension. Harrison was able to extend his lease just in the nick of time in July. Harrison and the landlord who owned the flat above subsequently settled on a premium of £5,500 . If the lease had dipped to less than 80 years, the price would have gone up by a minimum £850.
Last month we were e-mailed by Mr and Mrs. R Clarke , who purchased a one bedroom flat in Poynton in September 2012. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparative flats in Poynton with an extended lease were worth £225,400. The average amount of ground rent was £45 billed annually. The lease came to a finish on 20 March 2090. Considering the 64 years left we approximated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 plus expenses.
Mr and Mrs. I Martinez was assigned a lease of a first floor apartment in Poynton in August 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Poynton with an extended lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease came to a finish in 2101. Given that there were 75 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.