As the length of the unexpired term of a Plympton domestic lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 100 years to run then this decrease may be negligible that being said there will become a stage 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 increase markedly the cost. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Plympton will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm whether you are eligible to extend your lease. In limited 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 considered that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
| Yorkshire 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. |
Retaining our service gives you increased control over the value of your Plympton leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Jake, started to get near to the 80-year mark with the lease on his garden flat in Plympton. Having bought his home two decades ago, the length of the lease was of minimal importance. by good luck, he became aware that he needed to take steps soon on a lease extension. Jake extended the lease just under the wire last July. Jake and the landlord subsequently settled on the final figure of £5,500 . If the lease had dropped lower than 80 years, the amount would have increased by at least £900.
Last October we were contacted by Ms U Taylor , who completed a purpose-built flat in Plympton in April 2002. We are asked if we could estimate the price could be for a 90 year lease extension. Comparative residencies in Plympton with an extended lease were valued about £210,600. The mid-range ground rent payable was £45 billed annually. The lease elapsed in 2087. Having 62 years unexpired we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of professional charges.
Ms Naomi Michel moved into a one bedroom flat in Plympton in May 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparative residencies in Plympton with 100 year plus lease were worth £265,000. The average amount of ground rent was £50 billed quarterly. The lease end date was in 2098. Taking into account 73 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.