Rainham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Rainham enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Rainham you must investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a Rainham leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is put in place without delay
Leasehold residencies in Rainham with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
Lease extensions in Rainham can be a difficult process. We recommend you obtain 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 Rainham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Logan owned a conversion apartment in Rainham on the market with a lease of a few days over 72 years unexpired. Logan informally approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Logan to invoke his statutory right. Logan obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
Mr and Mrs. W Michel completed a basement apartment in Rainham in July 1998. We are asked if we could estimate the price would be to extend the lease by 90 years. Similar premises in Rainham with 100 year plus lease were valued around £280,000. The average amount of ground rent was £55 collected quarterly. The lease terminated on 20 July 2104. Given that there were 78 years outstanding we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.
An example of a Lease Extension decision for a Rainham property 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 number of years remaining on the existing lease(s) was 57.5 years.