Royston leases on domestic properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease dips lower than 80 years - otherwise a higher amount will be due. Flat owners in Royston will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain cases you may not qualify. There are also strict deadlines and procedures to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The lawyers that we work with procure Royston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of 6 months of lengthy discussions with the landlord of her first floor flat in Royston, Harriet initiated the lease extension process just as the lease was approaching the crucial 80-year threshold. The legal work was concluded in August 2015. The landlord’s charges were restricted to slightly above 500 pounds.
Last year we were called by Mr and Mrs. D Phillips , who took over the lease of a purpose-built apartment in Royston in September 1999. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical premises in Royston with an extended lease were worth £280,000. The average ground rent payable was £45 billed every twelve months. The lease lapsed in 2096. Taking into account 70 years remaining we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.
In 2010 we were called by Dr Shannon Reed who, having was assigned a lease of a ground floor flat in Royston in August 1999. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Similar flats in Royston with an extended lease were valued around £223,400. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease came to a finish in 2085. Considering the 59 years unexpired we approximated the premium to the landlord for the lease extension to be between £27,600 and £31,800 plus expenses.