The value of Plympton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the remaining term is below than 80 years
Leasehold premises in Plympton with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Plympton leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the landlord of her purpose-built apartment in Plympton, Eleanor initiated the lease extension process just as the lease was approaching the crucial eighty-year threshold. The legal work was finalised in July 2014. The freeholder’s charges were restricted to approximately 450 pounds.
Last Spring we were approach by Ms Sophie Green , who acquired a garden flat in Plympton in October 2006. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Identical homes in Plympton with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 billed annually. The lease ended on 20 January 2102. Considering the 77 years outstanding we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.
Last Christmas we were phoned by Dr Freya Garcia , who was assigned a lease of a first floor flat in Plympton in August 2009. The question was if we could estimate the premium would likely be for a 90 year lease extension. Comparative premises in Plympton with 100 year plus lease were valued around £183,600. The mid-range ground rent payable was £65 collected quarterly. The lease ran out on 23 November 2082. Considering the 57 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including legals.