Top reasons for Rainham lease extension

Why you should start your Rainham lease extension today:

Increase your lease and increase your Rainham property value

Rainham residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.

Rainham property with a lease extension has roughly the same value as a freehold

It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years in the future.

Lenders will not lend on a short lease

The trend since over the last decade has been for banks to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be charged. This has resulted in the unexpired lease term required by mortgage companies has increased. In the past banks would lend on a lease with twenty years plus the term of the loan - routinely 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

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

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

Rainham Lease Extension Example Cases:

Jacob, Rainham, London,

Jacob was the the leasehold proprietor of a conversion apartment in Rainham being sold with a lease of just over 59 years remaining. Jacob informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jacob to exercise his statutory right. Jacob obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.

Rainham case:

Last year we were approach by Dr J Davies , who completed a basement apartment in Rainham in March 1996. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative homes in Rainham with an extended lease were worth £264,000. The average amount of ground rent was £60 invoiced per annum. The lease finished in 2079. Considering the 53 years unexpired we approximated the premium to the landlord for the lease extension to be between £37,100 and £42,800 not including professional charges.