Plymouth leases on residential properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be payable. Leasehold owners in Plymouth will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and procedures to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Plymouth with over one hundred years remaining 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 reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Retaining our service will provide you enhanced control over the value of your Plymouth leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
David owned a conversion apartment in Plymouth being sold with a lease of fraction over fifty eight years left. David on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were David to exercise his statutory right. David procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. J Roberts bought a one bedroom flat in Plymouth in September 2010. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparable homes in Plymouth with a long lease were worth £198,800. The average amount of ground rent was £55 billed monthly. The lease came to a finish on 17 January 2081. Having 55 years unexpired we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus expenses.
Last year we were contacted by Ms Isabelle Pérez , who bought a recently refurbished flat in Plymouth in April 2005. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Comparative homes in Plymouth with a long lease were valued around £295,000. The average ground rent payable was £50 billed monthly. The lease came to a finish in 2101. Given that there were 75 years outstanding we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.