With a long leasehold property in Rainham, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than eighty years remaining. Residents in Rainham with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When the lease term has under 80 years outstanding, under the relevant legislation the freeholder can calculate and levy a larger amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Rainham with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Santander | |
| Skipton Building Society | |
| TSB | |
| Royal Bank of Scotland |
The conveyancing solicitors 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.
Connor owned a conversion apartment in Rainham on the market with a lease of a few days over fifty eight years remaining. Connor informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Connor to exercise his statutory right. Connor procured expert advice and secured satisfactory deal informally and readily saleable.
Last Christmas we were contacted by Mr and Mrs. P Collins , who was assigned a lease of a basement apartment 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. Similar homes in Rainham with 100 year plus lease were in the region of £227,800. The average amount of ground rent was £45 billed per annum. The lease ran out on 7 January 2091. Considering the 65 years remaining we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of costs.
An example of a Lease Extension decision for a Rainham premises 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 term was 57.5 years.