Chances are that where you own a flat in Rayleigh you actually own a long leasehold interest over your property
It is generally considered that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Rayleigh lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Following lengthy negotiations with the freeholder of her two bedroom flat in Rayleigh, Maisie commenced the lease extension process as the eighty year threshold was fast advancing. The transaction was concluded in August 2009. The freeholder’s fees were negotiated to slightly above 550 GBP.
In 2009 we were phoned by Mr and Mrs. T Girard who, having completed a purpose-built flat in Rayleigh in May 1997. The question was if we could approximate the premium would likely be for a ninety year lease extension. Identical residencies in Rayleigh with 100 year plus lease were valued around £191,400. The average amount of ground rent was £55 invoiced annually. The lease expired on 9 February 2080. Taking into account 54 years unexpired we estimated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 plus legals.
Ms S Scott owned a one bedroom apartment in Rayleigh in February 1997. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable properties in Rayleigh with an extended lease were worth £295,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease came to a finish on 11 January 2100. Having 74 years remaining we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.