With a residential leasehold premises in Plaistow, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than eighty years left. Residents in Plaistow with a lease drawing near to 81 years unexpired should seriously consider extending it sooner as opposed to later. Once the lease term has less than eighty years left, under the relevant legislation the landlord can calculate and levy a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Plaistow with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Using our service gives you increased control over the value of your Plaistow leasehold, as your property will be more valuable and saleable in respect 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.
Last Winter Jayden, started to get near to the 80-year mark with the lease on his garden apartment in Plaistow. Having purchased his property two decades ago, the length of the lease was of minimal relevance. Luckily, he noticed he would soon be paying an inflated amount for a lease extension. Jayden extended the lease just in the nick of time last July. Jayden and the freeholder eventually agreed on an amount of £5,000 . If he had missed the deadline, the amount would have gone up by at least £1,000.
Last November we were called by Mr and Mrs. T García , who bought a purpose-built apartment in Plaistow in February 2008. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar properties in Plaistow with an extended lease were worth £183,600. The mid-range ground rent payable was £65 invoiced monthly. The lease expired in 2083. Given that there were 57 years remaining we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including fees.
An example of a Lease Extension decision for a Plaistow residence 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 affected 1 flat. The unexpired term as at the valuation date was 69.77 years.