The market value of a leasehold property in Plymouth is impacted by how long the lease has remaining. If it is close to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be concluded in advance of the eighty year cut off point. Leasehold Reform legislation enables Plymouth qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Skipton Building Society | |
| TSB | |
| The Mortgage Works |
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 conveyancing solicitor we work with provide it.
Benjamin owned a high value flat in Plymouth on the market with a lease of a few days over fifty eight years remaining. Benjamin on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Benjamin to invoke his statutory right. Benjamin obtained expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last July we were called by Mrs Ellie Stewart , who acquired a studio flat in Plymouth in August 1999. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Similar premises in Plymouth with 100 year plus lease were valued about £166,800. The mid-range ground rent payable was £50 collected per annum. The lease elapsed in 2076. Considering the 50 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of fees.
In 2012 we were phoned by Mr and Mrs. G James who, having took over the lease of a garden apartment in Plymouth in September 2011. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical homes in Plymouth with an extended lease were valued about £280,000. The mid-range ground rent payable was £45 billed every twelve months. The lease ran out on 12 November 2096. Taking into account 70 years remaining we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.