When it comes to residential leasehold premises in Rayners Lane, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially when there are fewer than 80 years remaining. Leasehold owners in Rayners Lane with a lease nearing 81 years remaining should seriously think of extending it sooner than later. When the lease term has fewer than eighty years outstanding, under the relevant statute the landlord can calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Rayners Lane with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless 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 in-depth market knowledge and the close ties they enjoy with Rayners Lane valuers.
Off the back of protracted negotiations with the landlord of her leasehold flat in Rayners Lane, Robyn commenced the lease extension process just as her lease was coming close to the critical eighty-year deadline. The transaction completed in April 2006. The landlord’s charges were kept to an absolute minimum.
Last Winter we were approach by Mrs J Nelson , who took over the lease of a one bedroom apartment in Rayners Lane in March 2006. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar flats in Rayners Lane with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced monthly. The lease elapsed on 25 January 2098. Having 72 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.
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 related to 1 flat. The number of years remaining on the existing lease(s) was 79 years.