Top reasons for Rainham lease extension

Why you should start your Rainham lease extension today:

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

For anyone whose Rainham home is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.

Rainham property with a lease extension is almost the same value as a freehold

Leasehold properties in Rainham with more than one hundred years unexpired 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

Banks and Building Societies may not grant a mortgage with a short lease

Most banks and building societies require a lengthy amount of time remaining on any leasehold property before they will contemplate providing a mortgage on it. Regardless of whether you need a mortgage, you should be aware that it is likely that someone intending to acquire your property in the future might well do, so where they can't get a mortgage, then the market price of your property will likely be adversely impacted. Since 2008 most banks and building societies have increased the required minimum lease length that they are willing to grant a mortgage on

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

The conveyancers 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 conveyancer we work with provide it.

Rainham Lease Extension Case Summaries:

Ollie, Rainham, London

In 2014 Ollie, came seriously near to the eighty-year threshold with the lease on his first floor apartment in Rainham. In buying his home twenty years ago, the unexpired term was of little relevance. Thankfully, he became aware that he needed to take action soon on a lease extension. Ollie arranged for a lease extension just ahead of time last June. Ollie and the landlord eventually settled on an amount of £6,000 . If he had missed the deadline, the figure would have increased by at least £1,050.

Rainham case:

In 2014 we were called by Mr and Mrs. N Patel who, having bought a ground floor apartment in Rainham in January 2005. The question was if we could estimate the price could be to extend the lease by 90 years. Comparative premises in Rainham with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 invoiced monthly. The lease concluded on 4 March 2095. Considering the 69 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.