When it comes to domestic leasehold premises in Plymouth, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are fewer than 80 years left. Leasehold owners in Plymouth with a lease drawing near to 81 years remaining should seriously consider extending it sooner than later. When a lease has under 80 years outstanding, under the relevant legislation the landlord can calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Plymouth with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Plymouth,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Plymouth valuers.
18 months ago Ollie, started to get close to the 80-year threshold with the lease on his purpose- built flat in Plymouth. In buying his home two decades ago, the unexpired term was of minimal concern. Luckily, he realised he needed to take action soon on a lease extension. Ollie extended the lease just in the nick of time last January. Ollie and the landlord eventually agreed on sum of £5,000 . If the lease had slid lower than eighty years, the amount would have gone up by at least £850.
Last Summer we were e-mailed by Mrs Millie Hernández , who owned a purpose-built apartment in Plymouth in November 2010. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Identical flats in Plymouth with an extended lease were worth £240,600. The average ground rent payable was £60 collected every twelve months. The lease lapsed on 22 August 2088. Having 62 years outstanding we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of legals.
Last Autumn we were called by Mr and Mrs. I Bernard , who took over the lease of a studio apartment in Plymouth in February 2009. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Similar homes in Plymouth with 100 year plus lease were valued around £174,200. The mid-range ground rent payable was £55 collected annually. The lease expired on 8 July 2077. Taking into account 51 years left we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of professional charges.