The market value of a leasehold property in Plumstead is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be addressed prior to the 80 year mark. Leasehold Reform legislation enables Plumstead qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of 90 years. The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Plumstead can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer 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 Plumstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ethan owned a conversion apartment in Plumstead being marketed with a lease of a few days over 61 years unexpired. Ethan informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Ethan to invoke his statutory right. Ethan obtained expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
In 2012 we were phoned by Mr and Mrs. E James who, having acquired a studio apartment in Plumstead in October 2007. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical flats in Plumstead with a long lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease ran out on 24 September 2105. Given that there were 79 years left we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.
An example of a Lease Extension decision for a Plumstead flat 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 was in relation to 1 flat.