The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Royton can extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Royton lease extension. Postponing the costs today simply increases the premium you will ultimately be required to pay to extend the lease.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Yorkshire 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. |
Lease extensions in Royton can be a difficult process. We recommend you secure guidance from a lawyer and surveyor 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.
Eli was the the leasehold owner of a conversion apartment in Royton on the market with a lease of just over sixty years unexpired. Eli informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Eli to exercise his statutory right. Eli procured expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2012 we were e-mailed by Mr and Mrs. K Martinez who, having completed a purpose-built flat in Royton in April 2009. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Comparable premises in Royton with 100 year plus lease were in the region of £233,200. The average ground rent payable was £60 billed annually. The lease expired on 4 February 2086. Considering the 61 years outstanding we approximated the premium to the landlord for the lease extension to be within £22,800 and £26,400 not including fees.
Mr S Carter acquired a first floor apartment in Royton in April 2012. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative premises in Royton with a long lease were in the region of £171,800. The average amount of ground rent was £55 collected monthly. The lease expired on 23 June 2075. Given that there were 50 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 plus costs.