The re-sale value of a leasehold property in Rayners Lane is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be addressed prior to the eighty year threshold. Statute enables Rayners Lane qualifying lessees to acquire a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Rayners Lane can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Rayners Lane lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Finley, started to get near to the eighty-year mark with the lease on his ground floor flat in Rayners Lane. In buying his flat 18 years ago, the lease term was of little importance. Luckily, he noticed he would imminently be paying an escalated premium for a lease extension. Finley extended the lease at the eleventh hour in June. Finley and the landlord ultimately settled on the final figure of £6,000 . If he failed to meet the deadline, the sum would have become more exhorbitant by a minimum £850.
Ms V López completed a one bedroom flat in Rayners Lane in July 2003. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical residencies in Rayners Lane with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £65 billed quarterly. The lease came to a finish in 2094. Taking into account 68 years remaining we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Rayners Lane residence 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 affected 1 flat. The remaining number of years on the lease was 79 years.