Plymouth leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Plymouth will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and formalities to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire Building Society | 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. |
The conveyancing solicitors that we work with handle 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.
Trailing unsuccessful correspondence with the freeholder of her two bedroom apartment in Plymouth, Imogen initiated the lease extension process as the eighty year mark was quickly approaching. The transaction completed in October 2008. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were approach by Dr N Brooks , who acquired a newly refurbished apartment in Plymouth in June 2005. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical flats in Plymouth with 100 year plus lease were valued around £210,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease termination date was in 2106. Taking into account 80 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
Ms Nicole François moved into a one bedroom apartment in Plymouth in August 2005. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Identical premises in Plymouth with an extended lease were in the region of £275,000. The mid-range ground rent payable was £45 collected quarterly. The lease expired in 2095. Taking into account 69 years remaining we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.