The value of Rayners Lane leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the unexpired lease term is less than 80 years
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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 also be not less than 75 years at the outset 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 |
Irrespective of whether you are a tenant or a freeholder in Rayners Lane,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rayners Lane valuers.
In recent months Samuel, came seriously close to the 80-year mark with the lease on his basement flat in Rayners Lane. In buying his home twenty years previously, the lease term was of little relevance. Fortunately, he realised he would soon be paying an escalated premium for Extending the lease. Samuel arranged for a lease extension at the eleventh hour last September. Samuel and the landlord who owned the flat above in the end settled on sum of £5,500 . If he not met the deadline, the sum would have escalated by at least £875.
In 2014 we were called by Mr and Mrs. C Scott who, having was assigned a lease of a studio flat in Rayners Lane in October 2001. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative properties in Rayners Lane with a long lease were in the region of £295,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ran out on 13 April 2100. Considering the 75 years outstanding we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.
An example of a Lease Extension matter before the tribunal for a Rayners Lane premises 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 number of years remaining on the existing lease(s) was 79 years.