Why you should commence your Plymouth lease extension
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<h3> Top reasons for lease extension now:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/plymouth">Plymouth</a> leasehold property depreciates with the years remaining on the lease.
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<p> When it comes to residential leasehold premises in Plymouth, you are actually buying a right to reside in a property for a set period of time. Modern 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 may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Residents in Plymouth with a lease nearing 81 years remaining should seriously consider extending it without delay. Once the lease term has below 80 years left, under the relevant legislation the freeholder can calculate and demand a greater premium, based on a technical multiplication, known as “marriage value” which is payable. <h4>Plymouth property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold properties in Plymouth with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it. <h4>Lending institutions may decide not to finance a property with a short lease</h4> The definition of a short lease depends on the specific mortgage company, yet lending institutions start to get nervous at around 75 years. This will be problematic when you wish to dispose of or refinance your flat as it will be practically unmortgageable. Even though you might have no imminent plan to sell but when you do your buyer must hold off for two years before being able to exercise the right to a an extension to the lease.
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<tr><th>Lender</th>
<th> Requirement
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<td>Accord Mortgages</td>
<td> 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.
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<td>Coventry Building Society</td>
<td> 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.
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<td>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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<td>TSB</td>
<td> Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
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<h4> Get in touch with one of our Plymouth lease extension solicitors or enfranchisement solicitors
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The lawyers 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 conveyancer we work with provide it.
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Plymouth Lease Extension Example Cases:
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<h5> Samuel, Plymouth, Devon,</h5>
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Samuel owned a high value flat in Plymouth on the market with a lease of a little over fifty eight years outstanding. Samuel informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Samuel to exercise his statutory right. Samuel obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
<h5>Plymouth case:</h5>
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In 2010 we were contacted by Mr and Mrs. H Morris who, having moved into a purpose-built apartment in Plymouth in August 2010. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparable homes in Plymouth with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £45 billed annually. The lease lapsed in 2098. Given that there were 72 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
<h5>Plymouth case:</h5>
<p> Ms G Turner took over the lease of a first floor flat in Plymouth in April 2012. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Similar residencies in Plymouth with an extended lease were valued about £233,200. The average amount of ground rent was £60 collected monthly. The lease ended on 6 June 2087. Considering the 61 years outstanding we calculated the premium to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of professional charges.
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