Main reasons to start your Rayleigh lease extension

Top reasons for lease extension now:

A Rayleigh leasehold property depreciates with the years remaining on the lease.

Rayleigh leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Rayleigh enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Rayleigh you would be well advised to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value

Rayleigh property with a lease extension is almost the same value as a freehold

Leasehold residencies in Rayleigh with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders will not grant a mortgage on a short lease

Banks and building societies are making their criteria more stringent and many now require flats to have a minimum of 60 if not 70 years remaining once the mortgage has expired. Given that a number of flats in Rayleigh were built in the 1950s, 1960s and 1970s as a result many now require lease extensions if they wish to get a mortgage.

Get in touch with one of our Rayleigh lease extension solicitors or enfranchisement solicitors

The lawyers that we work with handle Rayleigh lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Rayleigh Lease Extension Case Studies:

Millie, Rayleigh, Essex,

Following protracted correspondence with the landlord of her one bedroom flat in Rayleigh, Millie commenced the lease extension process as the 80 year threshold was rapidly approaching. The lease extension was concluded in June 2005. The freeholder’s charges were kept to an absolute minimum.

Rayleigh case:

In 2010 we were phoned by Mr Daniel Miller who, having bought a first floor apartment in Rayleigh in January 2001. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Rayleigh with a long lease were in the region of £205,000. The average ground rent payable was £50 collected per annum. The lease concluded on 20 July 2105. Considering the 79 years outstanding we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.

Rayleigh case:

Last Winter we were phoned by Mr and Mrs. Y Phillips , who purchased a one bedroom flat in Rayleigh in October 2000. The question was if we could approximate the premium would be for a ninety year lease extension. Comparative flats in Rayleigh with a long lease were in the region of £275,000. The average ground rent payable was £65 collected per annum. The lease ended in 2094. Taking into account 68 years unexpired we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.