When it comes to long leasehold property in Plaistow, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than 80 years remaining. Leasehold owners in Plaistow with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. Once the lease term has fewer than eighty years outstanding, under the relevant statute the landlord can calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
The lawyers that we work with handle Plaistow lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Jacob owned a conversion apartment in Plaistow on the market with a lease of fraction over fifty eight years outstanding. Jacob on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Jacob to exercise his statutory right. Jacob obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Ms Natasha Lambert moved into a ground floor flat in Plaistow in September 1999. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Identical homes in Plaistow with 100 year plus lease were valued around £254,200. The mid-range ground rent payable was £60 invoiced per annum. The lease expired on 27 January 2077. Taking into account 51 years unexpired we calculated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a Plaistow flat 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 number of years remaining on the existing lease(s) was 69.77 years.