Royton leases on domestic deteriorating in value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Royton will usually qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and procedures to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
Leasehold premises in Royton with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Royton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Royton valuers.
Two years ago Lucas, started to get near to the eighty-year mark with the lease on his ground floor apartment in Royton. In buying his flat two decades ago, the lease term was of little relevance. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Lucas was able to extend his lease just in the nick of time last April. Lucas and the freeholder via the managing agents in the end agreed on the final figure of £6,000 . If he had missed the deadline, the amount would have become more exhorbitant by a minimum £1,050.
Last January we were called by Mr and Mrs. S Parker , who moved into a purpose-built flat in Royton in November 1997. We are asked if we could approximate the price would be to prolong the lease by ninety years. Similar flats in Royton with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 billed every twelve months. The lease ended on 15 November 2097. Given that there were 72 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of legals.
Last Spring we were called by Mr and Mrs. G White , who owned a basement apartment in Royton in April 2004. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparative homes in Royton with an extended lease were worth £233,200. The mid-range ground rent payable was £60 collected every twelve months. The lease finished on 27 October 2086. Having 61 years left we estimated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of fees.