The nearer a residential lease in Plumstead nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond 125 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. Most flat owners in Plumstead will qualify for this right; that being said a conveyancing solicitor can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over 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 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Plumstead 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.
In 2014 Lucas, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Plumstead. Having bought his home two decades ago, the lease term was of no concern. Luckily, he recognised he needed to take steps soon on Extending the lease. Lucas extended the lease just under the wire last May. Lucas and the freeholder subsequently settled on sum of £5,500 . If the lease had gone to less than eighty years, the sum would have become more costly by a minimum £1,125.
In 2009 we were contacted by Mrs S Lambert who, having purchased a ground floor flat in Plumstead in September 2010. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar homes in Plumstead with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 invoiced per annum. The lease ended on 21 October 2082. Having 57 years left we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including professional charges.
An example of a Lease Extension decision 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 related to 1 flat.