The re-sale value of a leasehold property in Rayners Lane depends on how long the lease has left to run. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be finalised ahead of the eighty year cut off point. Current legislation enables Rayners Lane qualifying lessees to acquire a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Rayners Lane with over 100 years unexpired on the lease are sometimes regarded as a ‘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 freehold 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Regardless of whether you are a tenant or a landlord in Rayners Lane,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rayners Lane valuers.
In 2014 James, came critically near to the eighty-year mark with the lease on his two bedroom apartment in Rayners Lane. Having bought his property twenty years ago, the lease term was of minimal significance. As luck would have it, he recognised he needed to take steps soon on a lease extension. James was able to extend his lease at the eleventh hour in September. James and the landlord ultimately settled on the final figure of £6,000 . If the lease had slipped lower than eighty years, the premium would have increased by a minimum £1,150.
Dr A Cook was assigned a lease of a garden apartment in Rayners Lane in November 2002. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Rayners Lane with an extended lease were worth £260,200. The mid-range ground rent payable was £65 invoiced yearly. The lease lapsed on 18 January 2092. Considering the 66 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of fees.
An example of a Lease Extension case 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 related to 1 flat. The unexpired lease term was 79 years.