Rayleigh leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Rayleigh residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Rayleigh you would be well advised to see if your lease has between seventy and ninety years remaining. There are good reasons why a Rayleigh leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
Leasehold premises in Rayleigh with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Rayleigh can be a difficult process. We recommend you procure professional help 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 a wealth of experience 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.
14 months ago David, started to get near to the 80-year mark with the lease on his two bedroom apartment in Rayleigh. In buying his home two decades ago, the unexpired term was of minimal relevance. As luck would have it, he recognised he would imminently be paying an escalated premium for a lease extension. David extended the lease just in the nick of time last August. David and the freeholder via the management company eventually settled on a premium of £5,000 . If he had missed the deadline, the sum would have gone up by at least £925.
In 2013 we were e-mailed by Mr and Mrs. G Bell who, having completed a one bedroom apartment in Rayleigh in July 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Similar flats in Rayleigh with 100 year plus lease were in the region of £206,200. The average amount of ground rent was £60 billed yearly. The lease finished on 12 August 2081. Considering the 56 years outstanding we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.
Last Christmas we were contacted by Mrs B Bell , who took over the lease of a newly refurbished apartment in Rayleigh in January 2007. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical homes in Rayleigh with a long lease were in the region of £300,000. The mid-range ground rent payable was £50 billed quarterly. The lease ended in 2101. Having 76 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.