The re-sale value of a leasehold property in Rainham depends on how many years the lease has remaining. If it is close to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. Ideally one should start the lease extension process when a lease still has 82 years remaining so that a lease extension can be finalised well before the eighty year threshold. Current legislation entitles Rainham qualifying lessees to an additional term of 90 years over and above the existing term, at a nominal rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Rainham with more than one hundred years remaining on the lease are often regarded as a ‘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 buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Bank of Scotland | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Rainham,the lease extension lawyers 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.
Aaron owned a studio apartment in Rainham on the market with a lease of just over fifty eight years left. Aaron informally contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Aaron to invoke his statutory right. Aaron procured expert advice and secured satisfactory resolution informally and readily saleable.
Dr Ollie Miller acquired a one bedroom flat in Rainham in April 2002. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Comparable residencies in Rainham with a long lease were valued about £275,000. The average ground rent payable was £55 billed quarterly. The lease terminated in 2103. Considering the 77 years unexpired we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.
An example of a Lease Extension matter before the tribunal 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 term as at the valuation date was 57.5 years.