Plympton leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Plympton will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are also strict timetables and procedures to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Plympton,the lease extension experts 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 Plympton valuers.
Ibrahim was the the leasehold proprietor of a conversion flat in Plympton on the market with a lease of fraction over 59 years unexpired. Ibrahim on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim procured expert advice and secured satisfactory deal informally and readily saleable.
Mr and Mrs. E Collins moved into a garden apartment in Plympton in September 1999. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative flats in Plympton with an extended lease were valued around £242,600. The mid-range ground rent payable was £45 collected yearly. The lease elapsed in 2092. Considering the 67 years unexpired we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of legals.
Last month we were e-mailed by Dr Isobel López , who purchased a basement flat in Plympton in May 2006. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Similar residencies in Plympton with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £55 billed yearly. The lease terminated in 2103. Having 78 years remaining we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including legals.