For anyone whose Rayleigh home is held on a long lease, our message is clear – if nothing is done, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension.
Leasehold premises in Rayleigh with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Rayleigh,the lease extension solicitors 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 Rayleigh valuers.
Subsequent to unsuccessful discussions with the landlord of her first floor apartment in Rayleigh, Morgan started the lease extension process as the 80 year mark was swiftly coming. The transaction completed in February 2014. The freeholder’s charges were restricted to approximately 600 pounds.
Mr O Ali was assigned a lease of a newly refurbished flat in Rayleigh in August 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Identical properties in Rayleigh with an extended lease were in the region of £200,000. The average amount of ground rent was £50 collected every twelve months. The lease came to a finish on 10 July 2103. Having 77 years outstanding we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.
In 2012 we were called by Dr Connor Turner who, having owned a purpose-built apartment in Rayleigh in September 2004. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical premises in Rayleigh with a long lease were valued about £265,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease expiry date was in 2092. Given that there were 66 years outstanding we estimated the premium to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of professional charges.