The re-sale value of a leasehold property in Plymstock depends on how many years the lease has remaining. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that formalities can be concluded well before the 80 year cut off point. Statute enables Plymstock qualifying lessees to acquire a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| Skipton Building Society |
The conveyancers that we work with procure 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.
Jackson was the the leasehold proprietor of a high value apartment in Plymstock being sold with a lease of just over 61 years left. Jackson on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jackson to exercise his statutory right. Jackson procured expert advice and secured an acceptable resolution informally and sell the flat.
Last Winter we were phoned by Dr Melissa Sánchez , who was assigned a lease of a recently refurbished apartment in Plymstock in September 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Similar properties in Plymstock with a long lease were worth £265,200. The mid-range amount of ground rent was £65 collected annually. The lease ran out on 13 May 2092. Considering the 66 years outstanding we estimated the premium to the landlord for the lease extension to be within £15,200 and £17,600 plus fees.
Dr Ibrahim Torres acquired a recently refurbished flat in Plymstock in July 2012. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Similar flats in Plymstock with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 billed every twelve months. The lease termination date was in 2081. Taking into account 55 years left we estimated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 plus costs.