When it comes to residential leasehold property in Rayleigh, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Residents in Rayleigh with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. When a lease has less than eighty years left, under the current statute the landlord can calculate and demand a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Rayleigh,the lease extension experts that we work with will always be willing 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.
Caleb owned a studio flat in Rayleigh on the market with a lease of fraction over sixty years remaining. Caleb informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Spring we were contacted by Mr Evan Martin , who moved into a one bedroom flat in Rayleigh in January 1998. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable homes in Rayleigh with an extended lease were in the region of £257,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease end date was in 2090. Having 65 years remaining we approximated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of legals.
Mrs B Rivera purchased a ground floor flat in Rayleigh in September 2007. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparable homes in Rayleigh with a long lease were worth £191,400. The average ground rent payable was £55 invoiced quarterly. The lease ran out in 2079. Taking into account 54 years as a residual term we approximated the premium to the landlord for the lease extension to be between £34,200 and £39,600 exclusive of professional charges.