Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in North Plymouth. Clearly, the period of lease left reduces over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in North Plymouth have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. Do give careful attention before putting off your North Plymouth lease extension. Putting off the cost now likely increases the price you will eventually have to pay to extend your lease
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in North Plymouth can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring North Plymouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Aiden, started to get close to the eighty-year threshold with the lease on his first floor apartment in North Plymouth. Having purchased his property 18 years previously, the unexpired term was of little concern. As luck would have it, he noticed he needed to take action soon on a lease extension. Aiden was able to extend his lease at the eleventh hour last March. Aiden and the freeholder in the end settled on a premium of £6,000 . If he not met the deadline, the amount would have escalated by at least £1,050.
Dr W Bernard owned a purpose-built apartment in North Plymouth in September 2008. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar properties in North Plymouth with an extended lease were worth £205,000. The average ground rent payable was £50 invoiced every twelve months. The lease ended on 3 November 2104. Considering the 79 years outstanding we estimated the premium to the landlord to extend the lease to be within £7,600 and £8,800 not including professional charges.
Last Autumn we were e-mailed by Dr A André , who was assigned a lease of a studio flat in North Plymouth in May 2010. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar homes in North Plymouth with a long lease were in the region of £275,000. The average amount of ground rent was £65 collected per annum. The lease end date was on 25 March 2093. Taking into account 68 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of expenses.