Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Plaistow. Clearly, the term of lease left shortens as time goes by. This may slip by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in Plaistow have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give due consideration before delaying your Plaistow lease extension. Putting off the cost now only increases the price you will ultimately have to pay for a lease extension
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately 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 ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Plaistow leasehold, as your property will be more valuable and saleable 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.
Gabriel was the the leasehold owner of a high value apartment in Plaistow being sold with a lease of a few days over sixty years remaining. Gabriel informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree 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 doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Gabriel to exercise his statutory right. Gabriel obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2014 we were e-mailed by Dr Harriet Bennett who, having was assigned a lease of a purpose-built flat in Plaistow in May 2007. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable homes in Plaistow with an extended lease were worth £235,200. The average amount of ground rent was £45 billed every twelve months. The lease lapsed on 11 May 2091. Taking into account 66 years unexpired we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.
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 was in relation to 1 flat. The unexpired term was 69.77 years.