Why you should start your Rainham Kent lease extension

Why you should start your Rainham Kent lease extension today:

Increase your lease and increase your Rainham Kent property value

Rainham Kent leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Rainham Kent enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Rainham Kent you really ought to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold properties in Rainham Kent with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.

Banks and Building Societies may decide not to finance a property on a short lease

Lending institutions have specific criteria when lending monies charged on leasehold homes. Some will simply refrain from lending at all once the remaining lease term goes below a specified unexpired lease term. Many Mortgage lenders will not consider property with a remaining term of less than seventy years as adequate security. In addition to this being important when selling, it is also relevant where you are wanting to refinance your Rainham Kent property.

What makes us experts in Rainham Kent lease extensions?

The lawyers 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.

Rainham Kent Lease Extension Case Summaries:

Harrison, Rainham Kent, Kent

In 2014 Harrison, started to get close to the eighty-year mark with the lease on his basement flat in Rainham Kent. In buying his flat two decades ago, the lease term was of no concern. As luck would have it, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Harrison was able to extend his lease just ahead of time in August. Harrison and the landlord eventually settled on an amount of £5,000 . If the lease had gone to less than 80 years, the sum would have escalated by at least £950.

Rainham Kent case:

Last year we were approach by Dr Y François , who completed a one bedroom flat in Rainham Kent in May 2012. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable properties in Rainham Kent with a long lease were worth £225,400. The average ground rent payable was £45 billed quarterly. The lease terminated on 14 August 2090. Taking into account 64 years outstanding we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 plus professional charges.

Rainham Kent case:

In 2012 we were e-mailed by Mr Tommy Turner who, having purchased a one bedroom apartment in Rainham Kent in July 1999. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable properties in Rainham Kent with a long lease were valued around £270,000. The average ground rent payable was £55 invoiced per annum. The lease expiry date was on 10 September 2101. Considering the 75 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.