On the balance of probabilities if you own a flat in Rayleigh you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Engaging our service will provide you better control over the value of your Rayleigh leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Toby, started to get near to the eighty-year mark with the lease on his two bedroom flat in Rayleigh. Having bought his home two decades ago, the length of the lease was of little bearing. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Toby was able to extend his lease just in the nick of time in January. Toby and the landlord who owned the flat above in the end settled on sum of £6,000 . If the lease had gone below 80 years, the premium would have gone up by at least £1,000.
In 2009 we were called by Dr B Gunderson who, having was assigned a lease of a purpose-built apartment in Rayleigh in April 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Comparable homes in Rayleigh with an extended lease were worth £300,000. The mid-range ground rent payable was £50 billed annually. The lease ran out in 2101. Given that there were 76 years outstanding we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.
Dr Alicia Bell moved into a ground floor apartment in Rayleigh in September 1998. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Identical properties in Rayleigh with an extended lease were valued around £257,800. The average amount of ground rent was £65 invoiced per annum. The lease lapsed in 2090. Considering the 65 years left we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 not including professional charges.