Plumstead leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Plumstead tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Plumstead you must check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Halifax | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Plumstead can be a difficult process. We recommend you get professional help from a conveyancer and valuer 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 a wealth of experience procuring Plumstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Sebastian, came critically near to the 80-year mark with the lease on his ground floor flat in Plumstead. In buying his home 19 years previously, the lease term was of no relevance. Fortunately, he noticed he would soon be paying an escalated premium for Extending the lease. Sebastian was able to extend his lease just ahead of time last May. Sebastian and the freeholder ultimately agreed on a premium of £5,500 . If he failed to meet the deadline, the premium would have become more exhorbitant by a minimum £925.
Last Autumn we were e-mailed by Dr Aimee Ali , who purchased a garden flat in Plumstead in September 2000. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Comparative properties in Plumstead with a long lease were valued about £264,000. The average amount of ground rent was £60 invoiced annually. The lease concluded in 2077. Considering the 53 years outstanding we approximated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Plumstead flat 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 related to 1 flat.