Main reasons to commence your Plymouth lease extension

Top reasons for lease extension now:

Increase your lease and increase your Plymouth property value

The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Plymouth have the legal entitlement to extend the lease for a further ninety years under statute. Do think carefully before delaying your Plymouth lease extension. Shelving that expense now simply increases the price you will ultimately be required to pay to extend the lease.

Plymouth property with a lease extension is almost the same value as a freehold

Leasehold residencies in Plymouth with more than one hundred years left 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.

Lending institutions may decide not to lend with a short lease

The trend since 2008 has been for lenders to tighten lending requirements across the board - this has extended to the types of security over which the home loan is to be charged. This has resulted in the unexpired lease term required by banks has increased. Historically mortgage companies were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Plymouth?

Engaging our service gives you better control over the value of your Plymouth leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Plymouth Lease Extension Example Cases:

Sarah, Plymouth, Devon,

After unsuccessful negotiations with the landlord of her two bedroom apartment in Plymouth, Sarah commenced the lease extension process as the eighty year deadline was rapidly coming. The lease extension completed in April 2009. The freeholder’s charges were negotiated to a tad over 700 GBP.

Plymouth case:

Dr W Harris was assigned a lease of a first floor flat in Plymouth in January 2001. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Plymouth with 100 year plus lease were valued about £280,000. The mid-range ground rent payable was £45 billed per annum. The lease terminated on 11 October 2096. Given that there were 70 years left we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.

Plymouth case:

Last Winter we were e-mailed by Mr L Leroy , who completed a newly refurbished apartment in Plymouth in June 2002. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative properties in Plymouth with an extended lease were in the region of £218,400. The average ground rent payable was £60 billed per annum. The lease end date was in 2085. Taking into account 59 years outstanding we estimated the premium to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of costs.