Plympton leases on residential deteriorating in value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Plympton will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not be entitled. There are also strict timetables and formalities to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Plympton with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Plympton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Plympton valuers.
In the wake of 9 months of protracted correspondence with the freeholder of her first floor apartment in Plympton, Amber started the lease extension process as the eighty year deadline was fast coming. The lease extension completed in November 2012. The freeholder’s charges were kept to an absolute minimum.
Mr V Roberts acquired a garden apartment in Plympton in September 2010. The dilemma was if we could estimate the premium would likely be to prolong the lease by 90 years. Identical residencies in Plympton with an extended lease were in the region of £200,800. The average amount of ground rent was £65 invoiced every twelve months. The lease concluded on 6 October 2086. Considering the 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 not including fees.
In 2011 we were contacted by Mr and Mrs. Y Morel who, having owned a ground floor apartment in Plympton in January 1999. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical premises in Plympton with 100 year plus lease were in the region of £255,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease ended on 12 October 2097. Given that there were 71 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.