Main reasons to commence your Plymouth lease extension

Why you should start your Plymouth lease extension today:

A Plymouth lease depreciates with the years remaining on the lease.

Plymouth leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Plymouth tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Plymouth you should see if your lease has between seventy and 90 years left. There are compelling reasons why a Plymouth flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is effected without delay

Plymouth property with a lease extension has roughly the same value as a freehold

It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may not loan monies on a short lease

Most high street banks are making their criteria more stringent and a meaningful number now expect flats to have at least 60 if not 70 years remaining once the mortgage has expired. Given that plenty of flats in Plymouth were created in the 1950s, 1960s and 1970s as a result many now need to be extended if they if they are to be mortgageable.

Get in touch with one of our Plymouth lease extension solicitors or enfranchisement solicitors

The conveyancers 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.

Plymouth Lease Extension Example Cases:

Arthur, Plymouth, Devon

Two years ago Arthur, started to get near to the 80-year threshold with the lease on his first floor flat in Plymouth. Having bought his flat 19 years ago, the unexpired term was of little interest. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Arthur arranged for a lease extension at the eleventh hour in June. Arthur and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If the lease had slipped to less than 80 years, the sum would have increased by at least £925.

Plymouth case:

Dr Y Turner acquired a garden apartment in Plymouth in August 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Plymouth with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected quarterly. The lease end date was in 2100. Considering the 74 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.

Plymouth case:

Dr I Green owned a studio flat in Plymouth in September 2007. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Identical residencies in Plymouth with an extended lease were valued around £243,000. The average amount of ground rent was £65 billed every twelve months. The lease lapsed in 2089. Considering the 63 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus legals.