Why you should commence your Plaistow lease extension

Top reasons for lease extension now:

A Plaistow leasehold property depreciates with the years remaining on the lease.

Plaistow leases on domestic deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the current lease falls lower than 80 years - otherwise a higher amount will be due. Leasehold owners in Plaistow will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain cases you may not qualify. There are also strict deadlines and formalities to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.

Plaistow property with a lease extension is almost the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.

Lending institutions may not finance a property with a short lease

Lenders are tightening their criteria and many now want flats to have a minimum of 60 if not 70 years remaining once the mortgage has expired. Considering plenty of flats in Plaistow were built in the fifties, sixties and seventies as a result many now require lease extensions if they wish to obtain a mortgage.

What makes us experts in Plaistow lease extensions?

The conveyancers that we work with procure Plaistow lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Plaistow Lease Extension Case Studies:

Muhammad, Plaistow, London,

Muhammad was the the leasehold owner of a 2 bedroom flat in Plaistow on the market with a lease of fraction over 59 years remaining. Muhammad on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.

Plaistow case:

In 2009 we were called by Dr Callum Rivera who, having owned a first floor flat in Plaistow in June 2007. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparative homes in Plaistow with a long lease were worth £256,600. The mid-range ground rent payable was £60 invoiced annually. The lease end date was in 2078. Considering the 52 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 plus professional charges.