Unfortunately that a Rainham Kent residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Rainham Kent property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be payable. The majority of flat owners in Rainham Kent will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
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 ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Rainham Kent 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 conveyancing solicitor we work with provide it.
During the course of the last few months Reuben, came perilously near to the eighty-year threshold with the lease on his one bedroom flat in Rainham Kent. In buying his property two decades ago, the length of the lease was of little concern. Thankfully, he noticed he would imminently be paying way over the odds for a lease extension. Reuben arranged for a lease extension at the eleventh hour last May. Reuben and the landlord who owned the flat above subsequently settled on an amount of £5,500 . If he failed to meet the deadline, the price would have become more costly by a minimum £950.
Last Summer we were contacted by Dr Stephanie Mitchell , who moved into a purpose-built apartment in Rainham Kent in March 2002. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Identical homes in Rainham Kent with an extended lease were worth £242,600. The average amount of ground rent was £45 invoiced per annum. The lease finished on 21 April 2092. Considering the 67 years unexpired we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of fees.
Mrs R Clarke purchased a studio apartment in Rainham Kent in November 2000. We are asked if we could approximate the premium could be to extend the lease by an additional years. Identical premises in Rainham Kent with an extended lease were in the region of £280,000. The average ground rent payable was £55 billed every twelve months. The lease concluded on 7 November 2103. Given that there were 78 years unexpired we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including expenses.