Plympton leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Plympton will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In some cases you may not qualify. There are prescribed timetables and procedures to follow once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold premises in Plympton with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Virgin | |
| Yorkshire Building Society |
The conveyancers that we work with handle Plympton 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.
Benjamin was the the leasehold proprietor of a studio flat in Plympton being sold with a lease of a few days over 59 years left. Benjamin informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Benjamin to exercise his statutory right. Benjamin obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Last Spring we were called by Mrs J González , who owned a purpose-built flat in Plympton in January 2011. The dilemma was if we could estimate the premium could be to prolong the lease by ninety years. Comparative homes in Plympton with 100 year plus lease were worth £255,000. The average ground rent payable was £50 billed yearly. The lease ran out on 15 February 2097. Given that there were 71 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.
Dr E Robinson owned a one bedroom flat in Plympton in August 2009. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable homes in Plympton with a long lease were valued about £254,200. The average amount of ground rent was £60 collected per annum. The lease finished on 26 February 2077. Taking into account 51 years left we approximated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 plus fees.