It’s a harsh certainty that a Plymstock residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Plymstock property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term dips under 80 years, you will end up paying half of the property's 'marriage value' in addition to 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 conveyancer should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold residencies in Plymstock with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging 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 conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Teddy, started to get close to the eighty-year mark with the lease on his one bedroom apartment in Plymstock. In buying his flat 19 years ago, the lease term was of little interest. Luckily, he noticed he needed to take steps soon on Extending the lease. Teddy extended the lease just ahead of time in April. Teddy and the landlord ultimately agreed on the final figure of £5,000 . If he not met the deadline, the figure would have become more exhorbitant by a minimum £1,150.
In 2012 we were approached by Mr and Mrs. J Edwards who, having completed a purpose-built apartment in Plymstock in October 2012. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar premises in Plymstock with 100 year plus lease were valued around £240,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease finished in 2088. Considering the 62 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus fees.
Dr Nathan Khan acquired a garden flat in Plymstock in June 2007. The question was if we could approximate the premium would likely be to extend the lease by ninety years. Similar flats in Plymstock with an extended lease were valued around £174,200. The mid-range amount of ground rent was £55 billed every twelve months. The lease ended in 2077. Considering the 51 years unexpired we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of fees.