Plymouth Lease Extension - Free Consultation

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Main reasons to start your Plymouth lease extension

Why you should commence your Plymouth lease extension today:

A Plymouth lease depreciates with the years remaining on the lease.

As the length of the unexpired term of a Plymouth domestic lease lessens so does its value and therefore the value of your property. If the lease has, beyond one hundred years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease sooner rather than later. The majority of flat owners in Plymouth will meet the qualifying criteria; however a lawyer will be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

Plymouth property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.

Lenders may decide not to issue a mortgage on a short lease

The propensity since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Lender Requirement
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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.
Halifax Minimum 70 years from the date of the mortgage.
Leeds Building Society 85 years remaing from the start of the mortgage.
Lloyds TSB Scotland Mortgage term plus 30 years subject to an overall minimum term of 70 years

Why use us for your lease extension in Plymouth?

The conveyancing solicitors that we work with undertake Plymouth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Plymouth Lease Extension Case Studies:

Natalie, Plymouth, Devon,

In the wake of 6 months of lengthy negotiations with the landlord of her studio flat in Plymouth, Natalie started the lease extension process as the eighty year mark was swiftly coming. The transaction was finalised in February 2006. The landlord’s costs were negotiated to a tad over 550 GBP.

Plymouth case:

Dr W Ward acquired a purpose-built apartment in Plymouth in June 2012. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Plymouth with a long lease were valued about £225,800. The average amount of ground rent was £60 collected quarterly. The lease elapsed on 10 February 2081. Given that there were 60 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 plus fees.

Plymouth case:

Ms E Ricardo owned a studio flat in Plymouth in September 2009. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Comparable premises in Plymouth with an extended lease were worth £210,000. The average ground rent payable was £50 invoiced monthly. The lease lapsed on 25 May 2101. Considering the 80 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.