Plymstock leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Plymstock will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and formalities to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Leeds Building Society | |
| Nationwide Building Society |
The conveyancers that we work with handle Plymstock 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.
Two years ago Omar, came dangerously close to the eighty-year threshold with the lease on his studio apartment in Plymstock. Having purchased his flat two decades ago, the length of the lease was of no importance. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Omar extended the lease just ahead of time in March. Omar and the freeholder subsequently settled on the final figure of £5,000 . If he had missed the deadline, the figure would have gone up by at least £875.
In 2011 we were called by Dr V Stewart who, having owned a newly refurbished apartment in Plymstock in October 2010. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Similar homes in Plymstock with an extended lease were worth £205,000. The average amount of ground rent was £50 invoiced quarterly. The lease ran out on 2 July 2104. Considering the 78 years unexpired we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.
Last November we were called by Mr Eliot Bailey , who acquired a one bedroom flat in Plymstock in October 2010. The question was if we could approximate the price would likely be for a 90 year lease extension. Identical flats in Plymstock with an extended lease were worth £267,600. The mid-range amount of ground rent was £65 billed quarterly. The lease ran out on 20 June 2093. Having 67 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 plus costs.