Top reasons for Rayners Lane lease extension

Why you should start your Rayners Lane lease extension today:

A Rayners Lane lease depreciates with the years remaining on the lease.

With a domestic leasehold property in Rayners Lane, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years left. Leasehold owners in Rayners Lane with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. When a lease has under eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.

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

It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.

Banks and Building Societies will not grant a mortgage with a short lease

The trend since 2008 has been for lenders to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically lenders would lend on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

What makes us experts in Rayners Lane lease extensions?

The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.

Rayners Lane Lease Extension Example Cases:

Hugo, Rayners Lane, North West London

Last year Hugo, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Rayners Lane. Having bought his property two decades ago, the unexpired term was of minimal bearing. Luckily, he became aware that he needed to take steps soon on Extending the lease. Hugo was able to extend his lease at the eleventh hour last March. Hugo and the landlord who owned the flat above ultimately settled on sum of £5,500 . If he not met the deadline, the premium would have increased by a minimum £1,075.

Rayners Lane case:

Last year we were contacted by Ms Jade Bennett , who was assigned a lease of a studio apartment in Rayners Lane in April 1998. The dilemma was if we could estimate the price could be to extend the lease by a further 90 years. Comparative residencies in Rayners Lane with an extended lease were worth £257,800. The average amount of ground rent was £65 invoiced per annum. The lease elapsed on 23 October 2090. Given that there were 65 years unexpired we calculated the premium to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of costs.