With a domestic leasehold premises in Plympton, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Residents in Plympton with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. When a lease has under eighty years left, under the current Act the freeholder can calculate and demand a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Plympton with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Plympton 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.
Trailing unsuccessful negotiations with the freeholder of her garden apartment in Plympton, Kelsey initiated the lease extension process as the 80 year threshold was swiftly advancing. The transaction completed in April 2005. The freeholder’s costs were kept to an absolute minimum.
Dr H Gray completed a garden apartment in Plympton in February 2003. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable flats in Plympton with a long lease were in the region of £166,400. The average amount of ground rent was £60 collected annually. The lease finished in 2079. Taking into account 54 years outstanding we approximated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of fees.
In 2014 we were e-mailed by Mr Lucas Clarke who, having completed a purpose-built flat in Plympton in July 2002. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparative homes in Plympton with 100 year plus lease were valued about £227,800. The mid-range amount of ground rent was £45 collected monthly. The lease came to a finish in 2090. Having 65 years left we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.