Plasmarl leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be due. Leasehold owners in Plasmarl will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and steps to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Plasmarl with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Plasmarl can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Plasmarl lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Connor owned a 2 bedroom flat in Plasmarl on the market with a lease of just over 59 years remaining. Connor on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Connor to invoke his statutory right. Connor obtained expert advice and secured satisfactory resolution informally and sell the flat.
Last year we were approach by Mrs B Bertrand , who completed a studio apartment in Plasmarl in February 1998. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Comparable flats in Plasmarl with 100 year plus lease were worth £290,000. The average ground rent payable was £45 billed quarterly. The lease concluded in 2098. Taking into account 72 years outstanding we estimated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of fees.
Dr E Lefèvre completed a basement flat in Plasmarl in July 2001. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Plasmarl with a long lease were worth £233,200. The mid-range amount of ground rent was £60 billed quarterly. The lease terminated on 27 April 2087. Considering the 61 years left we calculated the premium to the landlord for the lease extension to be between £22,800 and £26,400 plus legals.