With a residential leasehold premises in Rayners Lane, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are less than eighty years left. Leasehold owners in Rayners Lane with a lease drawing near to 81 years left should seriously think of extending it sooner as opposed to later. When a lease has under 80 years outstanding, under the current statute the freeholder is entitled to calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Rayners Lane with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Rayners Lane 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 conveyancing solicitor we work with provide it.
Nathan owned a high value apartment in Rayners Lane on the market with a lease of fraction over fifty eight years outstanding. Nathan informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Nathan to invoke his statutory right. Nathan obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Dr Lewis Cox took over the lease of a basement flat in Rayners Lane in September 1995. We are asked if we could estimate the price could be to prolong the lease by an additional years. Identical premises in Rayners Lane with an extended lease were valued about £240,600. The mid-range amount of ground rent was £60 billed monthly. The lease lapsed in 2087. Considering the 62 years unexpired we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including costs.
An example of a Lease Extension matter before the tribunal for a Rayners Lane flat is GFF 1 Holyrood Avenue in May 2014. The Tenant wished to acquire a new (extended) lease and applied to the Willesden County Court who granted a vesting order on 20* March2013. The Tribunal decied that the premium to be paid was £9,062 This case was in relation to 1 flat. The unexpired residue of the current lease was 79 years.