The value of Rayleigh leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is less than 80 years
Leasehold premises in Rayleigh with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Engaging our service gives you better control over the value of your Rayleigh leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Max owned a high value apartment in Rayleigh being marketed with a lease of just over 59 years remaining. Max on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Max to invoke his statutory right. Max procured expert advice and secured satisfactory deal informally and readily saleable.
In 2010 we were approached by Dr E Dupont who, having owned a first floor flat in Rayleigh in August 2011. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Identical residencies in Rayleigh with an extended lease were in the region of £248,000. The average ground rent payable was £65 collected every twelve months. The lease elapsed in 2089. Considering the 63 years remaining we approximated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of professional charges.
In 2013 we were e-mailed by Mr K García who, having took over the lease of a purpose-built flat in Rayleigh in July 1996. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable residencies in Rayleigh with a long lease were in the region of £181,600. The mid-range ground rent payable was £55 billed per annum. The lease ended in 2078. Considering the 52 years unexpired we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of legals.