Unfortunately that a Plymstock residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Plymstock property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Plymstock will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Santander |
Using our service gives you increased control over the value of your Plymstock leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
David was the the leasehold owner of a conversion flat in Plymstock on the market with a lease of a little over sixty years left. David on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were David to invoke his statutory right. David obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Dr E Roberts moved into a one bedroom flat in Plymstock in May 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Identical flats in Plymstock with a long lease were worth £174,200. The mid-range ground rent payable was £55 invoiced every twelve months. The lease ended on 5 March 2077. Given that there were 51 years unexpired we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including fees.
In 2009 we were approached by Mr Thomas Lee who, having moved into a studio flat in Plymstock in February 1997. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar properties in Plymstock with an extended lease were valued about £285,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease elapsed on 19 July 2097. Considering the 71 years as a residual term we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.