Rayners Lane leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Rayners Lane will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some cases you may not qualify. There are also strict deadlines and steps to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Rayners Lane with over one hundred years outstanding on the lease are sometimes 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 purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake 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 lawyer we work with provide it.
Trailing protracted negotiations with the freeholder of her ground floor apartment in Rayners Lane, Maisie commenced the lease extension process as the 80 year deadline was fast coming. The transaction was concluded in August 2007. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were approach by Ms K Martínez , who took over the lease of a purpose-built flat in Rayners Lane in February 2010. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparative homes in Rayners Lane with a long lease were valued around £295,000. The average amount of ground rent was £45 billed monthly. The lease expired on 13 April 2100. Taking into account 74 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Rayners Lane property 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 term as at the valuation date was 79 years.