There is no doubt about it a leasehold flat or house in Rainham Kent is a wasting asset as a result of the shortening lease. If the residual term has, over 125 years remaining then this decrease may be fractional nevertheless 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 increase markedly the cost. It is the primary rational as to why you should extend the lease sooner than later. Many flat owners in Rainham Kent will qualify for this right; that being said a conveyancing solicitor can advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Using our service gives you enhanced control over the value of your Rainham Kent leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the landlord of her two bedroom flat in Rainham Kent, Caitlin started the lease extension process just as her lease was approaching the all-important 80-year threshold. The lease extension was finalised in July 2012. The freeholder’s costs were kept to an absolute minimum.
Last month we were phoned by Mr and Mrs. G Clarke , who purchased a one bedroom flat in Rainham Kent in June 1998. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Rainham Kent with 100 year plus lease were valued about £210,600. The average ground rent payable was £45 billed monthly. The lease finished on 28 March 2087. Taking into account 62 years as a residual term we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of costs.
Ms Rachael Brooks purchased a purpose-built flat in Rainham Kent in June 2007. The question was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative premises in Rainham Kent with an extended lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected per annum. The lease finished in 2098. Having 73 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.