The closer a domestic lease in North Plymouth nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, over 100 years to run then this decrease may be of little impact however there will become a stage when a lease has less than eighty years remaining 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 logic behind why you should extend the lease sooner rather than later. Most flat owners in North Plymouth will meet the qualifying criteria; however a conveyancing solicitor should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your North Plymouth leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Lucas, came very near to the 80-year mark with the lease on his leasehold flat in North Plymouth. In buying his home 18 years previously, the lease term was of no bearing. by good luck, he realised he needed to take action soon on Extending the lease. Lucas arranged for a lease extension at the eleventh hour last June. Lucas and the landlord who owned the flat above eventually agreed on sum of £5,500 . If he not met the deadline, the price would have increased by at least £950.
In 2010 we were phoned by Mr L López who, having bought a one bedroom flat in North Plymouth in September 2000. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar homes in North Plymouth with a long lease were worth £184,000. The average amount of ground rent was £55 billed annually. The lease end date was on 27 September 2078. Given that there were 53 years remaining we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including professional charges.
In 2010 we were contacted by Dr Bethany Alexander who, having took over the lease of a studio apartment in North Plymouth in April 2004. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Comparable properties in North Plymouth with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease came to a finish on 16 April 2098. Taking into account 73 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.