Rainham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Rainham tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Rainham you should investigate if your lease has between 70 and ninety years left. There are good reasons why a Rainham flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Rainham,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rainham valuers.
Alfie was the the leasehold owner of a high value flat in Rainham being sold with a lease of a few days over 72 years outstanding. Alfie on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be due on a lease extension were Alfie to invoke his statutory right. Alfie obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2013 we were e-mailed by Dr Rory Petit who, having bought a studio flat in Rainham in October 2004. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative properties in Rainham with 100 year plus lease were valued around £260,000. The mid-range amount of ground rent was £50 invoiced annually. The lease came to a finish in 2098. Having 72 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
An example of a Lease Extension matter before the tribunal for a Rainham premises is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case related to 1 flat. The unexpired residue of the current lease was 57.5 years.