Top reasons for Plumstead lease extension

Top reasons for lease extension now:

A Plumstead leasehold property depreciates with the years remaining on the lease.

Plumstead leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Plumstead tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Plumstead you must check if your lease has between 70 and ninety years left. There are compelling reasons why a Plumstead leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is actioned without delay

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

It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to lend with a short lease

Almost all banks and building societies will not grant a mortgage on a lease with less than seventy years unexpired - although this varies from lender to lender. A buyer will undoubtedly encounter difficulties in obtaining a mortgage and this could result in your Plumstead property becoming difficult to sell or remortgage.

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

Regardless of whether you are a tenant or a freeholder in Plumstead,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Plumstead valuers.

Plumstead Lease Extension Case Studies:

Jack, Plumstead, South East London,

Jack was the the leasehold owner of a 2 bedroom apartment in Plumstead being marketed with a lease of fraction over fifty eight years outstanding. Jack informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Jack to exercise his statutory right. Jack obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.

Plumstead case:

In 2009 we were phoned by Mr Ibrahim Bell who, having bought a one bedroom apartment in Plumstead in April 2001. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar flats in Plumstead with an extended lease were in the region of £270,000. The average amount of ground rent was £55 invoiced every twelve months. The lease finished on 16 April 2100. Taking into account 74 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.