Chances are that if you own a flat in Plymouth you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Plymouth can be a difficult process. We recommend you secure guidance 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 in-depth market knowledge procuring Plymouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer David, started to get close to the 80-year threshold with the lease on his garden flat in Plymouth. Having bought his home twenty years ago, the lease term was of minimal relevance. Luckily, he realised he needed to take steps soon on Extending the lease. David was able to extend his lease just in the nick of time in August. David and the freeholder via the managing agents in the end settled on a premium of £5,500 . If the lease had fallen lower than 80 years, the sum would have escalated by a minimum £1,050.
Last year we were contacted by Mr and Mrs. F David , who was assigned a lease of a one bedroom flat in Plymouth in November 2012. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Similar premises in Plymouth with 100 year plus lease were worth £235,600. The mid-range ground rent payable was £60 invoiced every twelve months. The lease came to a finish on 6 January 2087. Having 62 years as a residual term we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including costs.
Dr Adam Martinez bought a one bedroom flat in Plymouth in September 2006. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar homes in Plymouth with an extended lease were valued around £174,200. The mid-range amount of ground rent was £55 collected quarterly. The lease ended in 2076. Taking into account 51 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including fees.