The closer a residential lease in Rainham nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond 125 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Rainham will meet the qualifying criteria; however a conveyancer will be able to advise if you are eligible to extend your lease. 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 residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Rainham can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Rainham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Matthew, came critically near to the 80-year threshold with the lease on his garden apartment in Rainham. Having purchased his home 19 years previously, the lease term was of little interest. by good luck, he realised he would soon be paying an inflated amount for Extending the lease. Matthew was able to extend his lease at the eleventh hour last May. Matthew and the landlord ultimately settled on a premium of £6,000 . If he had missed the deadline, the premium would have increased by a minimum £1,075.
In 2014 we were contacted by Dr Michael Bell who, having moved into a newly refurbished flat in Rainham in April 2010. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Similar homes in Rainham with a long lease were worth £176,200. The average amount of ground rent was £65 invoiced annually. The lease expiry date was on 22 February 2081. Given that there were 56 years left we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 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.