Plaistow leases on domestic deteriorating in value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Plaistow will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not qualify. There are also strict timetables and formalities to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Plaistow,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Plaistow valuers.
In the wake of 9 months of lengthy discussions with the freeholder of her purpose-built apartment in Plaistow, Jade started the lease extension process as the 80 year mark was rapidly approaching. The legal work completed in July 2007. The freeholder’s charges were negotiated to below 650 pounds.
Last Winter we were called by Mr and Mrs. Y Peterson , who acquired a newly refurbished flat in Plaistow in November 2004. The question was if we could approximate the price would be to extend the lease by an additional years. Identical residencies in Plaistow with a long lease were worth £246,800. The mid-range amount of ground rent was £60 collected monthly. The lease terminated on 15 September 2075. Taking into account 50 years left we calculated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of costs.
An example of a Lease Extension decision for a Plaistow property is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case was in relation to 1 flat. The unexpired term was 69.77 years.