Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Royton. Clearly, the period of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the property has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Royton have the right to extend the lease for a further ninety years under Leasehold Reform legislation. Please give careful attention before putting off your Royton lease extension. Putting off the cost now simply increases the price you will eventually incur for a lease extension
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Royton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Royton valuers.
Following lengthy negotiations with the landlord of her two bedroom apartment in Royton, Amy initiated the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The legal work completed in April 2005. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were phoned by Ms Isabel Norbert , who was assigned a lease of a garden flat in Royton in September 2004. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Similar flats in Royton with 100 year plus lease were in the region of £189,000. The mid-range amount of ground rent was £55 collected annually. The lease expiry date was in 2078. Taking into account 53 years remaining we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus costs.
Last month we were called by Mrs Jessica Díaz , who owned a studio flat in Royton in September 2002. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Similar residencies in Royton with a long lease were valued about £290,000. The average amount of ground rent was £45 collected every twelve months. The lease expired in 2098. Having 73 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.