The value of Plymouth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is less than 80 years
Leasehold residencies in Plymouth with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Santander | |
| Virgin |
Using our service gives you better control over the value of your Plymouth leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Owen was the the leasehold proprietor of a 2 bedroom apartment in Plymouth being sold with a lease of a few days over sixty years remaining. Owen on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Owen to exercise his statutory right. Owen procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Dr Leon Stewart took over the lease of a one bedroom apartment in Plymouth in April 1995. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Identical premises in Plymouth with a long lease were valued about £216,000. The mid-range amount of ground rent was £60 billed per annum. The lease expired in 2084. Having 58 years outstanding we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus professional charges.
Dr T Petit bought a purpose-built apartment in Plymouth in June 2004. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative premises in Plymouth with a long lease were valued about £200,000. The average ground rent payable was £50 collected quarterly. The lease expiry date was in 2104. Taking into account 78 years as a residual term we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.