Main reasons to commence your Rainham lease extension

Top reasons for lease extension now:

A Rainham lease depreciates with the years remaining on the lease.

For those whose Rainham home is held on a long lease, our message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Rainham with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.

Lenders may not issue a mortgage with a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. Historically banks would lend on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

What makes us experts in Rainham lease extensions?

The conveyancing solicitors that we work with handle Rainham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Rainham Lease Extension Example Cases:

Kyle, Rainham, London,

Kyle owned a 2 bedroom apartment in Rainham on the market with a lease of a few days over 61 years outstanding. Kyle informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Kyle to exercise his statutory right. Kyle obtained expert advice and secured satisfactory deal informally and sell the flat.

Rainham case:

Last Autumn we were approach by Dr F Davies , who acquired a ground floor flat in Rainham in February 2006. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical residencies in Rainham with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £55 invoiced per annum. The lease terminated on 28 April 2101. Given that there were 76 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.