As the the remaining lease term of a Rayners Lane domestic lease diminished so does its value and therefore the value of your property. Where the lease has, beyond 100 years remaining then this decrease may be negligible however there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Rayners Lane will qualify for this right; nevertheless a conveyancing solicitor will be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Rayners Lane with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. 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 |
|---|---|
| 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 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. |
Lease extensions in Rayners Lane can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 dealing with 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.
During the course of the last few months Connor, came dangerously close to the 80-year mark with the lease on his studio flat in Rayners Lane. Having purchased his property 19 years ago, the lease term was of no significance. Luckily, it dawned on him that he needed to take action soon on a lease extension. Connor arranged for a lease extension just under the wire last September. Connor and the landlord eventually settled on sum of £5,000 . If the lease had descended below 80 years, the sum would have become more exhorbitant by at least £1,000.
Mr and Mrs. Y Sánchez completed a basement apartment in Rayners Lane in February 1997. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Rayners Lane with 100 year plus lease were worth £225,800. The mid-range amount of ground rent was £60 billed monthly. The lease ended in 2086. Taking into account 60 years left we calculated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of fees.
An example of a Lease Extension decision 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 affected 1 flat. The unexpired term was 79 years.