Plaistow leases on residential deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Plaistow will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Plaistow leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the landlord of her studio flat in Plaistow, Phoebe started the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The legal work was concluded in May 2013. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. P Clarke acquired a one bedroom apartment in Plaistow in June 2007. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable premises in Plaistow with an extended lease were valued around £168,800. The average ground rent payable was £60 invoiced quarterly. The lease concluded on 26 January 2080. Having 55 years remaining we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 not including professional charges.
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 related to 1 flat. The unexpired term as at the valuation date was 69.77 years.