Plymstock leases on domestic properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the existing lease drops under 80 years - otherwise a higher premium will be due. Leasehold owners in Plymstock will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to comply with once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Plymstock with more than one hundred years left on the lease are often referred to as ‘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 to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Plymstock leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Luca owned a 2 bedroom apartment in Plymstock being marketed with a lease of fraction over sixty years left. Luca on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Luca to exercise his statutory right. Luca procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2010 we were phoned by Ms Alexandra Phillips who, having acquired a one bedroom flat in Plymstock in September 1995. The question was if we could approximate the premium would likely be to extend the lease by an additional years. Comparable homes in Plymstock with an extended lease were worth £223,400. The average amount of ground rent was £60 collected yearly. The lease concluded on 25 February 2085. Given that there were 59 years unexpired we approximated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 plus professional charges.
In 2009 we were contacted by Dr Jasper Lefèvre who, having bought a newly refurbished apartment in Plymstock in May 2008. We are asked if we could approximate the premium could be to extend the lease by an additional years. Comparative flats in Plymstock with a long lease were worth £205,000. The average amount of ground rent was £50 billed annually. The lease elapsed on 7 July 2105. Considering the 79 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.