Plymouth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Plymouth tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Plymouth you would be well advised to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Plymouth with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Plymouth can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in this area.
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.
Half a year ago Aarav, came very near to the eighty-year threshold with the lease on his leasehold flat in Plymouth. Having bought his home twenty years ago, the unexpired term was of no importance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Aarav extended the lease just ahead of time last September. Aarav and the freeholder in the end agreed on the final figure of £6,000 . If the lease had dipped below 80 years, the figure would have increased by a minimum £1,100.
In 2012 we were phoned by Mrs E Morris who, having purchased a studio apartment in Plymouth in October 2010. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical homes in Plymouth with an extended lease were valued around £200,000. The mid-range ground rent payable was £50 billed yearly. The lease lapsed on 9 September 2104. Given that there were 78 years remaining we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.
Last year we were contacted by Mr Hunter Bonnet , who took over the lease of a newly refurbished apartment in Plymouth in November 2012. The question was if we could approximate the premium could be to prolong the lease by an additional years. Similar residencies in Plymouth with 100 year plus lease were in the region of £267,600. The average amount of ground rent was £65 billed quarterly. The lease lapsed in 2093. Taking into account 67 years remaining we approximated the premium to the landlord for the lease extension to be within £14,300 and £16,400 plus fees.