Plasmarl residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
Leasehold premises in Plasmarl with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Plasmarl can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge procuring Plasmarl lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy negotiations with the landlord of her first floor apartment in Plasmarl, Amy initiated the lease extension process as the 80 year mark was fast nearing. The transaction was concluded in February 2009. The freeholder’s charges were restricted to slightly above five hundred GBP.
In 2009 we were phoned by Mr and Mrs. W Mason who, having completed a first floor flat in Plasmarl in March 1995. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Comparable flats in Plasmarl with an extended lease were worth £174,200. The average ground rent payable was £55 billed monthly. The lease concluded in 2076. Having 51 years left we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus costs.
In 2009 we were e-mailed by Dr Y Clarke who, having moved into a basement flat in Plasmarl in November 2004. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Plasmarl with a long lease were valued around £285,000. The mid-range ground rent payable was £45 billed yearly. The lease expiry date was on 2 October 2096. Having 71 years remaining we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.