Top reasons for Rainham lease extension

Main reasons to commence your Rainham lease extension today:

A Rainham leasehold property depreciates with the years remaining on the lease.

It’s a harsh certainty that a Rainham residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Rainham property market.Once your lease nears 85ish years, you need to 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 under 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Rainham will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.

Mortgage lenders may not lend with a short lease

Banks and building societies do not like short residential leases. You are likely to experience problems if you need to sell your flat in Rainham if the remaining term of your lease is less than the criteria set by the majority of lenders. Different lenders have varying requirements but on the whole they are looking for an unexpired term of at least seventy years.

Get in touch with one of our Rainham lease extension solicitors or enfranchisement solicitors

The lawyers that we work with procure Rainham 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 conveyancer we work with provide it.

Rainham Lease Extension Example Cases:

Liam, Rainham, London

Last October Liam, started to get close to the eighty-year mark with the lease on his purpose- built flat in Rainham. Having purchased his flat two decades ago, the lease term was of no interest. Luckily, he realised he would soon be paying an inflated amount for Extending the lease. Liam arranged for a lease extension just in the nick of time last April. Liam and the freeholder via the management company eventually settled on sum of £6,000 . If the lease had dropped to less than 80 years, the price would have escalated by at least £950.

Rainham case:

Mr and Mrs. H Martin completed a first floor flat in Rainham in January 2011. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in Rainham with an extended lease were worth £290,000. The mid-range ground rent payable was £55 collected per annum. The lease ended on 3 February 2106. Considering the 80 years outstanding we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.