Main reasons to commence your Royton lease extension

Top reasons for lease extension now:

A Royton lease depreciates with the years remaining on the lease.

As the length of the unexpired term of a Royton residential lease decreases so does its value and therefore the value of your property. Where the lease has, beyond 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has less than eighty 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 main reason why you should extend the lease without delay. Many flat owners in Royton will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.

Lending institutions will not loan monies on a short lease

Most banks have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly under seventy years as they are considered to be deficient security.

What makes us experts in Royton lease extensions?

Irrespective of whether you are a tenant or a landlord in Royton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Royton valuers.

Royton Lease Extension Example Cases:

Jacob, Royton, Greater Manchester,

Jacob was the the leasehold proprietor of a conversion flat in Royton being sold with a lease of a few days over 61 years unexpired. Jacob informally contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Jacob to invoke his statutory right. Jacob procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.

Royton case:

In 2009 we were contacted by Mr and Mrs. K Anderson who, having acquired a purpose-built apartment in Royton in March 2004. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Comparable homes in Royton with a long lease were worth £300,000. The mid-range amount of ground rent was £50 billed quarterly. The lease came to a finish in 2102. Taking into account 76 years left we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.

Royton case:

In 2009 we were called by Dr Tyler Torres who, having acquired a one bedroom flat in Royton in May 2005. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Similar premises in Royton with an extended lease were worth £252,800. The mid-range ground rent payable was £65 invoiced annually. The lease expired in 2091. Considering the 65 years outstanding we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of costs.