With a long leasehold property in Plumstead, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years left. Residents in Plumstead with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once a lease has below eighty years left, under the relevant statute the freeholder is entitled to calculate and charge a larger premium, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Plumstead,the lease extension lawyers 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.
Last October Evan, came perilously near to the eighty-year threshold with the lease on his purpose- built flat in Plumstead. Having purchased his flat 18 years ago, the unexpired term was of no interest. Fortunately, he noticed he would imminently be paying way over the odds for Extending the lease. Evan arranged for a lease extension just in the nick of time last January. Evan and the landlord who owned the flat above ultimately settled on sum of £6,000 . If he had missed the deadline, the price would have escalated by a minimum £850.
Dr V Baker purchased a newly refurbished flat in Plumstead in January 2010. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparative residencies in Plumstead with 100 year plus lease were worth £260,000. The average ground rent payable was £50 billed annually. The lease came to a finish in 2097. Given that there were 72 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
An example of a Lease Extension case 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 was in relation to 1 flat.