Why you should start your Royton lease extension

Why you should start your Royton lease extension today:

A Royton lease depreciates with the years remaining on the lease.

The only way is down when it comes to Royton lease terms. Royton properties that have a residual term fewer than 80 years will de-escalate in market price at a rapid rate, and the cost to extend your lease will rise.

An extended lease has roughly the same value as a freehold

Leasehold properties in Royton with more than one hundred years unexpired on the lease are often 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders may not grant a mortgage with a short lease

Almost all banks and building societies will not grant a mortgage on a lease with less than seventy years left to run - although this varies between mortgage companies. A purchaser will no doubt find it difficult to obtain a mortgage and this could result in your Royton property becoming difficult to dispose of or remortgage.

Why use us for your lease extension in Royton?

Using our service will provide you better control over the value of your Royton leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Royton Lease Extension Example Cases:

Benjamin, Royton, Greater Manchester,

Benjamin was the the leasehold owner of a 2 bedroom flat in Royton being marketed with a lease of a little over 61 years outstanding. Benjamin informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Benjamin to invoke his statutory right. Benjamin procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Royton case:

Last Spring we were approach by Dr Y Johnson , who completed a studio flat in Royton in June 2006. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative premises in Royton with 100 year plus lease were in the region of £210,000. The average ground rent payable was £50 billed every twelve months. The lease ran out in 2106. Having 80 years remaining we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.

Royton case:

Mr and Mrs. T Watson completed a one bedroom apartment in Royton in March 2011. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Royton with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £45 collected quarterly. The lease elapsed in 2095. Given that there were 69 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.