As the the remaining lease term of a Plymstock domestic lease diminished so does its value and therefore the value of your property. If the residual term has, over one hundred years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending sooner rather than later. Many flat owners in Plymstock will meet the qualifying criteria; however a lawyer will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Plymstock with over 100 years outstanding on the lease are sometimes 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 upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Plymstock,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Plymstock valuers.
Subsequent to unsuccessful negotiations with the freeholder of her garden flat in Plymstock, Amy started the lease extension process just as her lease was approaching the all-important eighty-year mark. The transaction was concluded in March 2005. The freeholder’s costs were negotiated to slightly above six hundred GBP.
In 2014 we were called by Ms R François who, having acquired a ground floor flat in Plymstock in February 1999. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Similar properties in Plymstock with 100 year plus lease were valued about £205,000. The mid-range amount of ground rent was £50 collected quarterly. The lease elapsed on 4 August 2104. Considering the 79 years remaining we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
In 2014 we were phoned by Mr Blake Hall who, having completed a purpose-built flat in Plymstock in November 1996. We are asked if we could estimate the premium could be to prolong the lease by a further 90 years. Similar flats in Plymstock with a long lease were in the region of £275,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease elapsed in 2093. Taking into account 68 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.