With a domestic leasehold property in Rayleigh, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are less than eighty years left. Leasehold owners in Rayleigh with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once the lease term has below 80 years remaining, under the relevant Act the landlord is entitled to calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Rayleigh with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Rayleigh leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jacob owned a high value apartment in Rayleigh being sold with a lease of a little over 61 years left. Jacob informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be due on a lease extension were Jacob to invoke his statutory right. Jacob obtained expert advice and secured an acceptable deal informally and sell the property.
In 2014 we were e-mailed by Mr and Mrs. N Nelson who, having took over the lease of a basement flat in Rayleigh in October 2012. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Similar premises in Rayleigh with a long lease were valued about £181,600. The mid-range ground rent payable was £55 billed yearly. The lease ended on 28 October 2078. Taking into account 52 years left we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of fees.
Last June we were contacted by Ms F Ali , who moved into a ground floor apartment in Rayleigh in November 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical homes in Rayleigh with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 billed annually. The lease elapsed on 26 October 2098. Given that there were 72 years remaining we estimated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of professional charges.