Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Plympton. Inevitably, the length of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Plympton have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give due consideration before putting off your Plympton lease extension. Holding off that expense now only increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a property with more than 100 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 worth the same as 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Plympton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Plympton valuers.
Samuel was the the leasehold proprietor of a conversion flat in Plympton on the market with a lease of a few days over 72 years remaining. Samuel on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Samuel to invoke his statutory right. Samuel obtained expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
Last year we were called by Mr and Mrs. F Scott , who acquired a studio flat in Plympton in August 2007. The question was if we could estimate the price could be to extend the lease by an additional years. Identical properties in Plympton with an extended lease were worth £265,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease expiry date was in 2098. Considering the 74 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
In 2009 we were called by Ms N Moore who, having purchased a one bedroom flat in Plympton in February 1995. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparative properties in Plympton with a long lease were in the region of £166,400. The average amount of ground rent was £60 billed monthly. The lease expiry date was in 2078. Given that there were 54 years left we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of fees.