As the the remaining lease term of a Poynton domestic lease diminished so does its value and therefore the value of your property. If the lease has, more than 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. The majority of flat owners in Poynton will meet the qualifying criteria; however a conveyancer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Poynton leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Reuben was the the leasehold owner of a 2 bedroom apartment in Poynton being marketed with a lease of a little over sixty years unexpired. Reuben on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Reuben to exercise his statutory right. Reuben procured expert legal guidance and secured an acceptable deal informally and sell the flat.
Last Summer we were contacted by Dr Y Allen , who owned a basement apartment in Poynton in January 2009. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative properties in Poynton with a long lease were in the region of £264,000. The average amount of ground rent was £60 billed per annum. The lease terminated on 8 August 2078. Considering the 53 years unexpired we approximated the premium to the landlord to extend the lease to be between £37,100 and £42,800 exclusive of fees.
Last May we were contacted by Mr and Mrs. R López , who was assigned a lease of a one bedroom flat in Poynton in July 1997. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Identical properties in Poynton with a long lease were worth £225,400. The average amount of ground rent was £45 billed annually. The lease terminated on 28 May 2089. Taking into account 64 years unexpired we estimated the premium to the landlord to extend the lease to be within £16,200 and £18,600 exclusive of expenses.