The market value of a leasehold property in Plaistow is impacted by how many years the lease has left to run. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that all matters can be concluded prior to the eighty year mark. Current legislation enables Plaistow qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Plaistow with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Plaistow,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Plaistow valuers.
Last October William, started to get near to the 80-year mark with the lease on his leasehold flat in Plaistow. Having purchased his flat two decades ago, the unexpired term was of no interest. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. William extended the lease at the eleventh hour in September. William and the freeholder via the managing agents in the end agreed on the final figure of £5,000 . If he not met the deadline, the premium would have become more exhorbitant by at least £1,075.
In 2010 we were e-mailed by Dr Aimee Moore who, having completed a ground floor apartment in Plaistow in April 2012. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Similar residencies in Plaistow with 100 year plus lease were worth £176,200. The average ground rent payable was £65 billed every twelve months. The lease elapsed in 2082. Having 56 years unexpired we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of professional charges.
An example of a Lease Extension decision for a Plaistow premises 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 lease term was 69.77 years.