The closer a residential lease in Plumstead nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of 125 years to run then this decrease may be negligible however there will become a stage when a lease has fewer than 80 years remaining 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 main rational as to why you should consider extending sooner rather than later. The majority of flat owners in Plumstead will meet the qualifying criteria; however a conveyancing solicitor can advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Plumstead with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Plumstead can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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.
Two years ago Edward, started to get near to the eighty-year mark with the lease on his first floor apartment in Plumstead. In buying his property two decades ago, the lease term was of minimal interest. As luck would have it, he realised he would imminently be paying an escalated premium for a lease extension. Edward was able to extend his lease just ahead of time last January. Edward and the freeholder via the management company eventually settled on sum of £5,000 . If the lease had dipped below 80 years, the premium would have escalated by a minimum £1,125.
In 2014 we were phoned by Dr D Patel who, having took over the lease of a garden apartment in Plumstead in June 2001. We are asked if we could estimate the price could be to prolong the lease by ninety years. Identical homes in Plumstead with 100 year plus lease were in the region of £191,000. The average amount of ground rent was £65 billed per annum. The lease lapsed on 8 October 2084. Having 58 years left we calculated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Plumstead residence 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 was in relation to 1 flat.