Chances are that if you own a flat in Plumstead you actually own a long leasehold interest over your property
Leasehold residencies in Plumstead with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Plumstead leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jackson was the the leasehold proprietor of a 2 bedroom flat in Plumstead being marketed with a lease of just over sixty years unexpired. Jackson informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jackson to invoke his statutory right. Jackson procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the property.
Last year we were contacted by Mr and Mrs. C Kelly , who purchased a ground floor flat in Plumstead in September 2001. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative properties in Plumstead with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £50 invoiced yearly. The lease came to a finish on 18 June 2098. Taking into account 73 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Plumstead premises 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.