Why you should commence your Royton lease extension

Why you should start your Royton lease extension today:

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

The market value of Royton 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 escalate substantially once the unexpired lease term is less than eighty years

Royton property with a lease extension has roughly the same value as a freehold

Leasehold properties in Royton with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.

Mortgage lenders will not issue a mortgage on a short lease

Lenders are really clamping down as regards to homes in Royton with short leases. For instance you may find that their lending requirements are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so if you wanted to sell, your only options would be to find a cash buyer, or try your luck at auction thus limiting the number of prospective purchasers.

What makes us experts in Royton lease extensions?

Using our service gives you better control over the value of your Royton leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Royton Lease Extension Case Summaries:

Dexter, Royton, Greater Manchester

Two years ago Dexter, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Royton. Having purchased his home 18 years previously, the unexpired term was of no significance. Thankfully, he realised he needed to take steps soon on a lease extension. Dexter arranged for a lease extension at the eleventh hour last May. Dexter and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If he failed to meet the deadline, the figure would have gone up by at least £1,000.

Royton case:

Last Winter we were e-mailed by Dr Niamh Laurent , who owned a garden apartment in Royton in January 2004. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Comparable residencies in Royton with an extended lease were worth £208,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease concluded in 2083. Given that there were 57 years remaining we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including legals.

Royton case:

Ms D Alexander purchased a basement apartment in Royton in February 2003. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Similar premises in Royton with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected annually. The lease terminated in 2103. Given that there were 77 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.