Rayleigh leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Rayleigh residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Rayleigh you really ought to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Rayleigh flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is effected without delay
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Rayleigh,the lease extension solicitors 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.
In recent months Toby, started to get near to the 80-year mark with the lease on his leasehold apartment in Rayleigh. In buying his property two decades ago, the unexpired term was of little interest. by good luck, he realised he would soon be paying way over the odds for Extending the lease. Toby was able to extend his lease just in the nick of time in August. Toby and the landlord who owned the flat above in the end settled on a premium of £5,500 . If he had missed the deadline, the price would have gone up by at least £875.
In 2013 we were contacted by Mr and Mrs. P Nelson who, having acquired a basement flat in Rayleigh in February 2005. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparable homes in Rayleigh with a long lease were worth £280,000. The mid-range ground rent payable was £45 billed annually. The lease finished on 21 February 2095. Considering the 70 years left we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.
Mr and Mrs. E Pérez owned a purpose-built apartment in Rayleigh in May 1998. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative premises in Rayleigh with a long lease were in the region of £223,400. The average amount of ground rent was £60 invoiced monthly. The lease concluded on 17 November 2084. Taking into account 59 years left we estimated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 not including costs.