Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Rayleigh. Inevitably, the period of lease left shortens over time. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Rayleigh have the legal entitlement to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give careful attention before putting off your Rayleigh lease extension. Holding off that expense now only increases the price you will ultimately incur for a lease extension
Leasehold premises in Rayleigh with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Rayleigh,the lease extension solicitors 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.
In the wake of 9 months of lengthy negotiations with the landlord of her garden apartment in Rayleigh, Sian initiated the lease extension process as the eighty year mark was fast approaching. The transaction was finalised in January 2006. The landlord’s costs were restricted to under four hundred pounds.
In 2014 we were contacted by Mrs Kate Ali who, having acquired a garden flat in Rayleigh in March 2006. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Rayleigh with 100 year plus lease were worth £275,000. The average ground rent payable was £65 invoiced yearly. The lease came to a finish in 2093. Having 68 years as a residual term we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.
In 2011 we were contacted by Dr B Taylor who, having bought a studio apartment in Rayleigh in July 2005. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Identical flats in Rayleigh with 100 year plus lease were in the region of £208,600. The mid-range ground rent payable was £60 collected quarterly. The lease expiry date was on 18 May 2082. Having 57 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus costs.