The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Plymouth have the right to extend the lease for a further 90 years in accordance with statute. Do give careful consideration before delaying your Plymouth lease extension. Putting off that expense today simply increases the price you will eventually have to pay to extend the lease.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Plymouth,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Plymouth valuers.
Ben was the the leasehold proprietor of a studio apartment in Plymouth being sold with a lease of just over fifty eight years remaining. Ben informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ben to invoke his statutory right. Ben procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Ms M Turner took over the lease of a one bedroom flat in Plymouth in February 2001. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar homes in Plymouth with a long lease were worth £275,000. The mid-range ground rent payable was £65 collected quarterly. The lease lapsed on 26 February 2094. Having 68 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.
Last Christmas we were contacted by Mr and Mrs. O Campbell , who acquired a purpose-built apartment in Plymouth in September 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable properties in Plymouth with an extended lease were in the region of £208,600. The mid-range amount of ground rent was £60 billed yearly. The lease terminated on 6 March 2083. Having 57 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of expenses.