Plaistow leases on residential deteriorating in value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Plaistow will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some circumstances you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Plaistow with in excess of one hundred years remaining 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 to be gained by buying 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. |
| Chelsea Building Society | 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Plaistow,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Plaistow valuers.
Finley owned a 2 bedroom apartment in Plaistow being sold with a lease of a little over 59 years outstanding. Finley on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Finley to exercise his statutory right. Finley obtained expert advice and secured satisfactory deal informally and sell the property.
Last year we were approach by Dr Y Davies , who completed a studio apartment in Plaistow in January 2006. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparative homes in Plaistow with a long lease were in the region of £166,400. The mid-range amount of ground rent was £60 billed yearly. The lease ended on 1 January 2079. Taking into account 54 years outstanding we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of legals.
An example of a Lease Extension case 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 related to 1 flat. The unexpired residue of the current lease was 69.77 years.