Main reasons to commence your Royton lease extension

Top reasons for lease extension now:

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

The only way is down when it comes to Royton lease terms. Royton leaseholds that have a residual term shorter than 80 years will de-escalate in market price even faster, and the cost of extending your lease will go up.

An extended lease has roughly the same value as a freehold

Leasehold premises in Royton with more than one hundred years unexpired on the lease are sometimes 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Mortgage lenders may decide not to grant a mortgage on a short lease

Many banks and building societies will be unwilling to grant a mortgage on a lease with under 70 years left to run - although this varies from lender to lender. A purchaser will likely find it difficult in obtaining a mortgage and this will result in your Royton property becoming difficult to dispose of or to obtain finance on.

What makes us experts in Royton lease extensions?

Lease extensions in Royton can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Royton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Royton Lease Extension Case Summaries:

Finley, Royton, Greater Manchester,

Finley was the the leasehold owner of a conversion flat in Royton being sold with a lease of a little over 72 years left. Finley informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finley to exercise his statutory right. Finley procured expert legal guidance and secured satisfactory resolution without going to tribunal and sell the flat.

Royton case:

Dr H Parker acquired a one bedroom flat in Royton in September 2006. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparable properties in Royton with an extended lease were in the region of £275,000. The mid-range ground rent payable was £45 invoiced per annum. The lease terminated in 2095. Considering the 69 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.

Royton case:

In 2014 we were e-mailed by Mr and Mrs. Y Dupont who, having purchased a one bedroom apartment in Royton in October 2001. We are asked if we could estimate the price would be for a 90 year lease extension. Comparable residencies in Royton with an extended lease were valued around £216,000. The mid-range ground rent payable was £60 invoiced every twelve months. The lease lapsed in 2084. Having 58 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.