The market value of Plasmarl leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is below than eighty years
It is generally considered that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.
Arthur owned a high value flat in Plasmarl on the market with a lease of fraction over fifty eight years outstanding. Arthur informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Arthur to invoke his statutory right. Arthur procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2012 we were e-mailed by Mr and Mrs. R Adams who, having acquired a one bedroom flat in Plasmarl in February 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Plasmarl with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £45 billed annually. The lease came to a finish on 2 February 2095. Considering the 70 years remaining we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.
In 2013 we were e-mailed by Mrs M Turner who, having purchased a newly refurbished apartment in Plasmarl in April 2006. The question was if we could estimate the premium could be to extend the lease by an additional years. Comparable homes in Plasmarl with 100 year plus lease were worth £223,400. The average ground rent payable was £60 billed annually. The lease elapsed on 20 February 2084. Taking into account 59 years outstanding we approximated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 plus expenses.