The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Rayleigh may extend the lease for an additional ninety years under Leasehold Reform legislation. Do think carefully before delaying your Rayleigh lease extension. Shelving that expense now simply escalates the amount you will ultimately have to pay to extend the lease.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake 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.
In 2014 Andrew, started to get close to the eighty-year mark with the lease on his first floor apartment in Rayleigh. Having purchased his property 19 years previously, the unexpired term was of no interest. Fortunately, he became aware that he would soon be paying way over the odds for a lease extension. Andrew was able to extend his lease just under the wire last September. Andrew and the freeholder via the management company subsequently settled on a premium of £6,000 . If the lease had dipped lower than 80 years, the price would have escalated by at least £875.
Ms Ellen Robinson completed a one bedroom flat in Rayleigh in July 2007. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative flats in Rayleigh with an extended lease were valued around £240,600. The mid-range ground rent payable was £60 invoiced annually. The lease concluded in 2088. Taking into account 62 years left we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of professional charges.
In 2010 we were called by Mr David Lee who, having was assigned a lease of a newly refurbished flat in Rayleigh in September 2008. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Rayleigh with an extended lease were valued around £174,200. The average amount of ground rent was £55 billed yearly. The lease expired in 2077. Having 51 years outstanding we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of legals.