Rayleigh leases on domestic properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be payable. Flat owners in Rayleigh will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and procedures to comply with once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold properties in Rayleigh with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Rayleigh,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rayleigh valuers.
Half a year ago Charlie, came very near to the eighty-year mark with the lease on his basement apartment in Rayleigh. In buying his flat 19 years previously, the unexpired term was of no interest. Fortunately, he realised he would imminently be paying an inflated amount for Extending the lease. Charlie extended the lease at the eleventh hour in April. Charlie and the landlord who owned the flat above in the end settled on an amount of £6,000 . If the lease had gone below 80 years, the premium would have escalated by a minimum £1,075.
Dr Sophia Pérez completed a one bedroom apartment in Rayleigh in November 2002. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Identical residencies in Rayleigh with a long lease were in the region of £280,000. The average amount of ground rent was £45 invoiced per annum. The lease terminated in 2096. Considering the 70 years remaining we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.
Last Christmas we were contacted by Mr and Mrs. J Petit , who bought a recently refurbished apartment in Rayleigh in October 2000. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Rayleigh with 100 year plus lease were worth £223,400. The average ground rent payable was £60 invoiced quarterly. The lease elapsed in 2085. Considering the 59 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of fees.