When it comes to residential leasehold premises in Plymstock, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are fewer than eighty years left. Anyone in Plymstock with a lease approaching 81 years left should seriously consider extending it sooner rather than later. When a lease has under eighty years remaining, under the current statute the freeholder is entitled to calculate and demand a larger premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Plymstock with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Plymstock leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy discussions with the landlord of her studio apartment in Plymstock, Lydia initiated the lease extension process as the eighty year threshold was quickly advancing. The transaction completed in September 2005. The landlord’s charges were restricted to slightly above six hundred pounds.
Last month we were approach by Mr and Mrs. C Miller , who completed a purpose-built flat in Plymstock in July 2011. The question was if we could estimate the price would be for a ninety year lease extension. Identical flats in Plymstock with an extended lease were valued about £243,000. The mid-range ground rent payable was £65 invoiced yearly. The lease concluded on 24 August 2087. Considering the 63 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of expenses.
In 2014 we were called by Mr F Richardson who, having took over the lease of a purpose-built flat in Plymstock in January 2007. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable premises in Plymstock with a long lease were in the region of £181,600. The average ground rent payable was £55 collected annually. The lease elapsed on 20 February 2076. Having 52 years as a residual term we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus fees.