Chances are that if you own a flat in Rayners Lane you actually own a long leasehold interest over your property
It is generally accepted that a property with more than 100 years remaining 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 many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Using our service will provide you better control over the value of your Rayners Lane leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Logan was the the leasehold owner of a high value apartment in Rayners Lane being sold with a lease of fraction over 61 years left. Logan informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Logan to invoke his statutory right. Logan procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Autumn we were called by Mrs Danielle Leroy , who bought a first floor apartment in Rayners Lane in February 2000. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Rayners Lane with 100 year plus lease were valued about £300,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease expiry date was on 17 April 2102. Considering the 76 years as a residual term we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.
An example of a Lease Extension decision for a Rayners Lane property is GFF 1 Holyrood Avenue in May 2014. The Tenant wished to acquire a new (extended) lease and applied to the Willesden County Court who granted a vesting order on 20* March2013. The Tribunal decied that the premium to be paid was £9,062 This case was in relation to 1 flat. The unexpired lease term was 79 years.