The market value of Poynton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective 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 experience and the close ties they enjoy with Poynton valuers.
In 2014 Muhammad, started to get close to the 80-year mark with the lease on his basement apartment in Poynton. Having bought his flat 18 years previously, the unexpired term was of no significance. As luck would have it, he recognised he needed to take action soon on Extending the lease. Muhammad arranged for a lease extension at the eleventh hour last August. Muhammad and the landlord who owned the flat above subsequently agreed on an amount of £5,500 . If he not met the deadline, the sum would have escalated by a minimum £875.
In 2013 we were called by Mrs N Laurent who, having purchased a recently refurbished apartment in Poynton in April 2002. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparable properties in Poynton with a long lease were in the region of £254,200. The average ground rent payable was £60 collected monthly. The lease lapsed in 2076. Having 51 years remaining we calculated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of fees.
In 2014 we were contacted by Dr G Allen who, having acquired a ground floor apartment in Poynton in September 2002. We are asked if we could approximate the premium could be for a ninety year lease extension. Similar flats in Poynton with 100 year plus lease were valued around £210,600. The average amount of ground rent was £45 billed quarterly. The lease expired in 2087. Given that there were 62 years outstanding we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including expenses.