Plymouth leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets 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 should investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Plymouth flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is effected without delay
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Plymouth can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Plymouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Kyle was the the leasehold proprietor of a high value flat in Plymouth being marketed with a lease of fraction over fifty eight years unexpired. Kyle on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kyle to exercise his statutory right. Kyle obtained expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Last Spring we were e-mailed by Dr Naomi Bailey , who was assigned a lease of a studio apartment in Plymouth in September 2002. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Identical properties in Plymouth with an extended lease were worth £184,000. The average ground rent payable was £55 collected quarterly. The lease expired in 2079. Taking into account 53 years remaining we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including costs.
Dr G Bennett was assigned a lease of a one bedroom flat in Plymouth in October 2010. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparative flats in Plymouth with a long lease were valued about £290,000. The average amount of ground rent was £45 billed every twelve months. The lease expired in 2099. Having 73 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.