Rainham Lease Extension - Free Consultation

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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.

The re-sale value of a leasehold property in Rainham is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that a lease extension can be finalised in advance of the 80 year cut off point. Current legislation enables Rainham qualifying lessees to an additional term of 90 years over and above the remaining term, at a nominal rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

It is generally accepted that a residential leasehold with in excess of one hundred 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 property will be worth the same as a freehold for decades to come.

Banks and Building Societies will not issue a mortgage with a short lease

Nearly all mortgage companies insist on a lengthy amount of time left on any leasehold residence before they will consider providing a mortgage on it. Regardless of whether you need a mortgage, you should be conscious that it is reasonable to assume that someone wishing to acquire your property in the future might well do, so if they can't secure a mortgage, then the market price of the property could suffer. In the last decade most banks and building societies have increased the required minimum lease length that they are prepared to lend on

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.
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.
Lloyds TSB Scotland Mortgage term plus 30 years subject to an overall minimum term of 70 years
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
Yorkshire 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.

What makes us experts in Rainham lease extensions?

Irrespective of whether you are a tenant or a freeholder in Rainham,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rainham valuers.

Rainham Lease Extension Case Studies:

Arthur, Rainham, London,

Arthur owned a high value flat in Rainham on the market with a lease of just over 72 years remaining. Arthur on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Arthur to invoke his statutory right. Arthur procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.

Rainham case:

Last Autumn we were approach by Mr and Mrs. P Díaz , who was assigned a lease of a garden apartment in Rainham in June 1999. The dilemma was if we could approximate the price could be to extend the lease by 90 years. Comparative homes in Rainham with 100 year plus lease were valued about £270,000. The average amount of ground rent was £55 billed quarterly. The lease terminated in 2096. Taking into account 75 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.

Decision in Havering

An example of a Lease Extension case for a Rainham flat 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 residue of the current lease was 57.5 years.