As the length of the unexpired term of a Rainham domestic lease lessens so does its value and therefore the value of your property. Where the lease has, beyond 100 years to run then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. Many flat owners in Rainham will meet the qualifying criteria; that being said a conveyancer will be able to advise whether you are eligible to extend your lease. In certain 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 residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a landlord in Rainham,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 in-depth market knowledge and the close ties they enjoy with Rainham valuers.
Two years ago Stanley, started to get close to the 80-year mark with the lease on his leasehold apartment in Rainham. Having bought his flat two decades ago, the unexpired term was of no importance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Stanley was able to extend his lease at the eleventh hour in August. Stanley and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If the lease had fallen below 80 years, the figure would have increased by a minimum £850.
In 2014 we were e-mailed by Dr N Bernard who, having acquired a first floor flat in Rainham in April 2000. The question was if we could estimate the price could be for a 90 year lease extension. Comparable residencies in Rainham with a long lease were valued around £183,600. The mid-range amount of ground rent was £65 collected per annum. The lease finished on 19 May 2082. Given that there were 57 years unexpired we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of costs.
An example of a Lease Extension case for a Rainham residence 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 affected 1 flat. The unexpired term was 57.5 years.