With a residential leasehold property in Plumstead, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Residents in Plumstead with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once the lease term has below 80 years left, under the current legislation the landlord can calculate and levy a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Plumstead can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Plumstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of lengthy negotiations with the freeholder of her one bedroom apartment in Plumstead, Holly initiated the lease extension process just as her lease was approaching the all-important 80-year threshold. The legal work was concluded in April 2007. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were phoned by Dr Jack Patel who, having owned a basement flat in Plumstead in January 2002. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar properties in Plumstead with a long lease were valued about £200,800. The mid-range ground rent payable was £65 invoiced yearly. The lease came to a finish on 10 June 2086. Given that there were 60 years as a residual term we calculated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including expenses.
An example of a Lease Extension decision for a Plumstead property is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case affected 1 flat.