The closer a residential lease in Plymouth nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 100 years to run then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Most flat owners in Plymouth will qualify for this right; however a conveyancing solicitor can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Plymouth can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 Plymouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Thomas owned a 2 bedroom flat in Plymouth on the market with a lease of fraction over 59 years unexpired. Thomas on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Thomas to invoke his statutory right. Thomas procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last Autumn we were called by Dr W Gunderson , who was assigned a lease of a one bedroom apartment in Plymouth in May 2003. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar residencies in Plymouth with a long lease were valued around £250,400. The mid-range amount of ground rent was £65 billed annually. The lease elapsed in 2089. Considering the 64 years unexpired we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of professional charges.
Last August we were called by Dr Melissa Green , who moved into a garden apartment in Plymouth in March 2001. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Identical residencies in Plymouth with 100 year plus lease were valued around £184,000. The average ground rent payable was £55 invoiced per annum. The lease lapsed on 4 August 2078. Considering the 53 years left we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of costs.