Rayners Lane leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be payable. Flat owners in Rayners Lane will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Retaining our service gives you enhanced control over the value of your Rayners Lane leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the landlord of her first floor apartment in Rayners Lane, Harriet started the lease extension process as the eighty year threshold was rapidly advancing. The legal work was finalised in February 2006. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. G François completed a ground floor apartment in Rayners Lane in November 1999. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparative residencies in Rayners Lane with an extended lease were valued around £295,000. The mid-range ground rent payable was £45 billed quarterly. The lease elapsed in 2098. Taking into account 74 years unexpired we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.
An example of a Lease Extension case 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.