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 lease has, beyond 99 years remaining then this decrease may be negligible that being said there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Many flat owners in Rainham Kent will meet the qualifying criteria; nevertheless a lawyer will be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Rainham Kent with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Rainham Kent,the lease extension experts that we work with will always be prepared 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 Kent valuers.
Subsequent to unsuccessful negotiations with the freeholder of her studio apartment in Rainham Kent, Alice commenced the lease extension process as the eighty year deadline was rapidly approaching. The legal work was concluded in April 2009. The landlord’s fees were negotiated to approximately 500 GBP.
Last Summer we were called by Dr J Parker , who moved into a garden apartment in Rainham Kent in March 2000. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative properties in Rainham Kent with a long lease were in the region of £183,600. The average ground rent payable was £65 billed monthly. The lease concluded in 2083. Having 57 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including legals.
In 2014 we were contacted by Mr G Bailey who, having purchased a purpose-built flat in Rainham Kent in October 1995. The question was if we could approximate the price could be to extend the lease by a further 90 years. Comparable homes in Rainham Kent with an extended lease were worth £245,000. The average amount of ground rent was £50 invoiced monthly. The lease concluded on 28 March 2094. Considering the 68 years left we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.