The market value of a leasehold property in Rayleigh depends on how long the lease has remaining. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years remaining so that formalities can be finalised well before the eighty year cut off point. Leasehold Reform legislation entitles Rayleigh qualifying lessees to acquire a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Rayleigh with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| Virgin |
Lease extensions in Rayleigh can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Rayleigh lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sebastian owned a 2 bedroom flat in Rayleigh being marketed with a lease of just over 72 years unexpired. Sebastian informally spoke with his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2009 we were phoned by Dr D Nelson who, having owned a garden apartment in Rayleigh in September 2008. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparative flats in Rayleigh with 100 year plus lease were in the region of £300,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ended in 2101. Taking into account 75 years unexpired we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
Last Spring we were e-mailed by Ms Emily Miller , who bought a one bedroom apartment in Rayleigh in July 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Rayleigh with an extended lease were in the region of £250,400. The average amount of ground rent was £65 billed annually. The lease finished on 14 January 2090. Taking into account 64 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 not including professional charges.