When it comes to domestic leasehold property in Plumstead, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Residents in Plumstead with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once a lease has below 80 years remaining, under the relevant Act the freeholder is entitled to calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Plumstead with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Plumstead leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Aaron, came dangerously close to the eighty-year threshold with the lease on his studio apartment in Plumstead. Having bought his flat two decades ago, the unexpired term was of minimal bearing. Luckily, he became aware that he would soon be paying an inflated amount for a lease extension. Aaron was able to extend his lease just ahead of time in July. Aaron and the freeholder subsequently agreed on a premium of £5,500 . If he not met the deadline, the amount would have escalated by at least £1,150.
In 2014 we were phoned by Mrs Chantelle Harris who, having was assigned a lease of a first floor apartment in Plumstead in April 2011. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable homes in Plumstead with an extended lease were valued around £260,000. The mid-range amount of ground rent was £50 billed monthly. The lease came to a finish on 25 May 2098. Taking into account 72 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.
An example of a Lease Extension case for a Plumstead premises is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case affected 1 flat.