It’s an underpublicised truth that a Plympton residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Plympton property market.Where your lease has approximately ninety years left, you need to start thinking about 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 eighty years - otherwise a higher amount will be payable. Most flat owners in Plympton will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold properties in Plympton with over one hundred years remaining 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Plympton can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Plympton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Gabriel, came precariously close to the eighty-year mark with the lease on his ground floor apartment in Plympton. Having purchased his flat two decades ago, the lease term was of little significance. by good luck, he realised he needed to take action soon on a lease extension. Gabriel extended the lease just in the nick of time in June. Gabriel and the landlord who owned the flat above eventually settled on a premium of £6,000 . If he failed to meet the deadline, the figure would have gone up by at least £1,125.
Dr Y Clark was assigned a lease of a studio flat in Plympton in January 2006. The question was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical flats in Plympton with 100 year plus lease were valued around £254,200. The average amount of ground rent was £60 collected quarterly. The lease came to a finish in 2076. Considering the 51 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 plus professional charges.
Mr and Mrs. B Bell completed a first floor apartment in Plympton in February 2003. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Identical premises in Plympton with a long lease were worth £210,600. The average amount of ground rent was £45 invoiced per annum. The lease ran out on 9 August 2087. Taking into account 62 years remaining we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 plus expenses.