As the the remaining lease term of a Rayleigh domestic lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 99 years remaining then this decrease may be negligible however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Rayleigh will meet the qualifying criteria; nevertheless a conveyancer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Rayleigh can be a difficult process. We recommend you get guidance 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 procuring Rayleigh lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Archie owned a high value apartment in Rayleigh being sold with a lease of a few days over sixty years unexpired. Archie informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Archie to invoke his statutory right. Archie obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last April we were phoned by Mrs V Brooks , who moved into a recently refurbished apartment in Rayleigh in March 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Identical flats in Rayleigh with an extended lease were valued around £205,000. The average ground rent payable was £50 collected annually. The lease elapsed in 2103. Given that there were 78 years unexpired we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
In 2011 we were e-mailed by Dr Ben François who, having moved into a ground floor apartment in Rayleigh in May 2008. The question was if we could approximate the premium would be to extend the lease by 90 years. Comparative homes in Rayleigh with an extended lease were worth £267,600. The average amount of ground rent was £65 invoiced every twelve months. The lease ended in 2092. Taking into account 67 years left we calculated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of fees.