Royton leases on residential properties are gradually losing value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. Leasehold 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 steps to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Royton,the lease extension experts 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.
Jackson owned a conversion apartment in Royton on the market with a lease of just over 61 years remaining. Jackson on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Ms B Allen moved into a one bedroom apartment in Royton in May 2009. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Royton with a long lease were in the region of £198,800. The average ground rent payable was £55 collected monthly. The lease lapsed on 16 February 2079. Having 55 years remaining we calculated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus costs.
Last month we were e-mailed by Mr and Mrs. V Cooper , who completed a first floor flat in Royton in February 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable flats in Royton with an extended lease were in the region of £300,000. The average amount of ground rent was £50 collected monthly. The lease finished in 2099. Taking into account 75 years remaining we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.