The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Plumstead have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. Please think carefully before delaying your Plumstead lease extension. Putting off that expense now simply increases the premium you will eventually be required to pay for a lease extension.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 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 in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Plumstead,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Plumstead valuers.
After lengthy negotiations with the landlord of her basement flat in Plumstead, Catherine commenced the lease extension process as the 80 year threshold was fast approaching. The legal work was concluded in June 2015. The landlord’s fees were negotiated to under 700 pounds.
Dr J King completed a studio apartment in Plumstead in June 1999. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar premises in Plumstead with a long lease were valued around £242,600. The mid-range ground rent payable was £45 billed yearly. The lease concluded on 19 April 2093. Having 67 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 plus costs.
An example of a Lease Extension case for a Plumstead residence 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.