Plymstock 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 the lease becomes more expensive. The majority of owners of residential leasehold property in Plymstock enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Plymstock you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Plymstock with in excess of one hundred years unexpired 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you increased control over the value of your Plymstock leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Evan, came very close to the eighty-year mark with the lease on his first floor apartment in Plymstock. In buying his property 18 years ago, the unexpired term was of no significance. Fortunately, he realised he would soon be paying an escalated premium for Extending the lease. Evan arranged for a lease extension at the eleventh hour in April. Evan and the freeholder subsequently agreed on a premium of £5,500 . If the lease had fallen below eighty years, the figure would have become more costly by at least £1,150.
Mr and Mrs. B Carter bought a studio flat in Plymstock in January 2010. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Plymstock with a long lease were in the region of £267,600. The average ground rent payable was £65 collected every twelve months. The lease ended on 20 August 2093. Taking into account 67 years remaining we calculated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 plus expenses.
Last Spring we were approach by Mr and Mrs. T Peterson , who acquired a garden flat in Plymstock in October 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Comparative flats in Plymstock with a long lease were worth £206,200. The mid-range amount of ground rent was £60 collected quarterly. The lease ran out on 8 September 2082. Having 56 years left we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of fees.