Unfortunately that a Plymstock residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Plymstock property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be payable. The majority of flat owners in Plymstock will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally considered that a residential leasehold with more than 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 property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service gives you enhanced control over the value of your Plymstock leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the freeholder of her one bedroom flat in Plymstock, Jordan initiated the lease extension process as the 80 year mark was rapidly coming. The legal work completed in February 2008. The landlord’s charges were negotiated to a tad over 450 pounds.
Mr and Mrs. V Díaz completed a garden flat in Plymstock in August 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Plymstock with an extended lease were valued around £295,000. The average ground rent payable was £45 collected annually. The lease concluded in 2099. Having 74 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.
Dr H Lambert took over the lease of a first floor apartment in Plymstock in February 2002. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical properties in Plymstock with 100 year plus lease were valued around £243,000. The mid-range ground rent payable was £65 invoiced yearly. The lease ran out on 25 June 2088. Considering the 63 years remaining we approximated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus professional charges.