Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Rayners Lane. Inevitably, the term of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the residence has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Rayners Lane have the right to extend the lease for an additional ninety years in accordance with statute. Please give careful attention before delaying your Rayners Lane lease extension. Putting off the cost now likely increases the price you will eventually incur for a lease extension
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Rayners Lane,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rayners Lane valuers.
Kai owned a studio apartment in Rayners Lane on the market with a lease of just over 72 years remaining. Kai on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kai to invoke his statutory right. Kai obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
In 2011 we were approached by Mr and Mrs. U Dupont who, having purchased a first floor flat in Rayners Lane in September 2010. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Rayners Lane with 100 year plus lease were in the region of £191,400. The mid-range ground rent payable was £55 billed every twelve months. The lease expired on 1 May 2080. Taking into account 54 years unexpired we approximated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Rayners Lane premises 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 residue of the current lease was 79 years.