The closer a domestic lease in Plaistow gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of 99 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. Many flat owners in Plaistow will qualify for this right; however a conveyancing solicitor can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Plaistow with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Plaistow 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.
Subsequent to unsuccessful discussions with the freeholder of her first floor flat in Plaistow, Charlotte started the lease extension process as the 80 year threshold was fast approaching. The legal work was concluded in January 2010. The freeholder’s fees were kept to an absolute minimum.
Last September we were approach by Mr and Mrs. V Hall , who completed a ground floor flat in Plaistow in November 2010. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Similar flats in Plaistow with a long lease were in the region of £256,600. The mid-range amount of ground rent was £60 collected annually. The lease terminated on 13 June 2077. Taking into account 52 years unexpired we calculated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 exclusive of fees.
An example of a Lease Extension decision for a Plaistow residence is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case affected 1 flat. The remaining number of years on the lease was 69.77 years.