When it comes to domestic leasehold premises in Rainham, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than eighty years remaining. Residents in Rainham with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. When a lease has below eighty years outstanding, under the relevant Act the landlord can calculate and levy a larger amount, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Rainham can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 dealing with Rainham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the freeholder of her one bedroom apartment in Rainham, Natalie commenced the lease extension process just as the lease was coming close to the critical 80-year mark. The transaction was finalised in November 2008. The freeholder’s costs were restricted to a tad over 650 pounds.
In 2010 we were contacted by Dr W Cooper who, having purchased a basement flat in Rainham in May 2012. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparable premises in Rainham with 100 year plus lease were in the region of £235,200. The mid-range amount of ground rent was £45 billed monthly. The lease expired on 4 July 2092. Taking into account 66 years outstanding we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.
An example of a Lease Extension decision 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 was in relation to 1 flat. The unexpired lease term was 57.5 years.