The re-sale value of a leasehold property in Royston depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that formalities can be concluded prior to the eighty year mark. Leasehold Reform legislation entitles Royston qualifying lessees to an additional term of ninety years over and above the unexpired term, at a nominal rent (zero ground rent). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 Royston,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 Royston valuers.
Austin was the the leasehold owner of a conversion flat in Royston being sold with a lease of fraction over 61 years remaining. Austin informally approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Austin to exercise his statutory right. Austin procured expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2012 we were phoned by Mr Isaac André who, having bought a one bedroom flat in Royston in February 2003. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable homes in Royston with an extended lease were in the region of £189,000. The average ground rent payable was £55 collected annually. The lease lapsed in 2078. Having 53 years unexpired we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including legals.
Mr and Mrs. U Brooks moved into a basement flat in Royston in September 2007. The question was if we could approximate the premium would likely be for a ninety year lease extension. Similar homes in Royston with an extended lease were worth £290,000. The average ground rent payable was £45 invoiced quarterly. The lease expired in 2098. Taking into account 73 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.