Why you should commence your Poynton lease extension

Main reasons to start your Poynton lease extension today:

Increase your lease and increase your Poynton property value

Poynton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Poynton tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Poynton you must see if your lease has between seventy and 90 years left. There are compelling reasons why a Poynton flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is effected without delay

An extended lease has roughly the same value as a freehold

Leasehold residencies in Poynton with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lenders may not issue a mortgage on a short lease

The trend since 2008 has been for banks to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the unexpired lease term required by banks has increased. Historically mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Poynton lease extensions?

The conveyancers that we work with handle Poynton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Poynton Lease Extension Case Summaries:

Milo, Poynton, Cheshire,

Milo owned a high value flat in Poynton on the market with a lease of a few days over fifty eight years left. Milo informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Milo to exercise his statutory right. Milo procured expert advice and secured satisfactory resolution informally and sell the flat.

Poynton case:

Last Christmas we were phoned by Mr and Mrs. P López , who was assigned a lease of a garden flat in Poynton in September 1996. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative properties in Poynton with 100 year plus lease were in the region of £203,200. The mid-range amount of ground rent was £65 invoiced annually. The lease end date was in 2087. Given that there were 61 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 not including expenses.

Poynton case:

In 2010 we were e-mailed by Ms Olivia Nguyen who, having completed a first floor apartment in Poynton in September 2005. We are asked if we could estimate the price could be for a ninety year lease extension. Comparable properties in Poynton with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 billed annually. The lease ran out on 13 October 2098. Having 72 years unexpired we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.