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 your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Plymstock residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Plymstock you must see if your lease has between seventy and ninety years left. There are good reasons why a Plymstock flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is actioned without delay
Leasehold residencies in Plymstock with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 will provide you better control over the value of your Plymstock leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Cameron, came perilously close to the 80-year mark with the lease on his studio apartment in Plymstock. Having purchased his property two decades ago, the lease term was of minimal bearing. As luck would have it, it dawned on him that he would imminently be paying way over the odds for a lease extension. Cameron extended the lease just in the nick of time in May. Cameron and the freeholder via the management company ultimately settled on sum of £5,500 . If he had missed the deadline, the figure would have escalated by at least £1,025.
Last Winter we were approach by Mr and Mrs. G Nelson , who was assigned a lease of a garden flat in Plymstock in February 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable properties in Plymstock with a long lease were worth £275,000. The average amount of ground rent was £65 invoiced quarterly. The lease came to a finish on 11 January 2093. Considering the 68 years outstanding we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.
Dr Kian Bailey completed a one bedroom apartment in Plymstock in September 2004. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Similar residencies in Plymstock with a long lease were valued around £208,600. The mid-range amount of ground rent was £60 billed quarterly. The lease elapsed on 26 April 2082. Given that there were 57 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including costs.