For anyone whose Plasmarl flat is held on a long lease, our message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Halifax | |
| National Westminster Bank | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with handle Plasmarl 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 conveyancing solicitor we work with provide it.
Kian owned a 2 bedroom flat in Plasmarl being marketed with a lease of just over 72 years unexpired. Kian on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Kian to invoke his statutory right. Kian obtained expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last August we were e-mailed by Mr and Mrs. K Wright , who purchased a recently refurbished flat in Plasmarl in August 1996. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative homes in Plasmarl with an extended lease were valued about £257,800. The average ground rent payable was £65 invoiced monthly. The lease lapsed in 2091. Considering the 65 years remaining we approximated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 not including expenses.
In 2011 we were e-mailed by Dr U Flores who, having completed a purpose-built apartment in Plasmarl in February 1997. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparable homes in Plasmarl with an extended lease were valued about £198,800. The mid-range amount of ground rent was £55 billed annually. The lease finished in 2081. Taking into account 55 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of expenses.