Rainham 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 enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Rainham you must investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold premises in Rainham with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake 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 conveyancing solicitor we work with provide it.
In recent months James, came dangerously close to the eighty-year threshold with the lease on his leasehold flat in Rainham. Having purchased his property two decades ago, the lease term was of little concern. Luckily, it dawned on him that he needed to take steps soon on a lease extension. James arranged for a lease extension at the eleventh hour in May. James and the landlord who owned the flat above ultimately agreed on a premium of £6,000 . If the lease had slipped below eighty years, the sum would have increased by a minimum £1,075.
In 2010 we were approached by Mr and Mrs. S Peterson who, having took over the lease of a purpose-built flat in Rainham in April 2007. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable flats in Rainham with 100 year plus lease were valued about £260,000. The average ground rent payable was £50 invoiced yearly. The lease ended on 5 October 2097. Given that there were 72 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.
An example of a Lease Extension case for a Rainham property 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 related to 1 flat. The unexpired term as at the valuation date was 57.5 years.