There is no doubt about it a leasehold property in Plympton is a wasting asset as a result of the shortening lease. Where the lease has, over 100 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner rather than later. The majority of flat owners in Plympton will qualify for this right; that being said a conveyancer will be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Plympton with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Plympton can be a difficult process. We recommend you secure guidance from a conveyancer 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.
Two years ago Lucas, came critically near to the 80-year mark with the lease on his basement apartment in Plympton. In buying his home two decades ago, the lease term was of minimal relevance. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Lucas arranged for a lease extension just in the nick of time in June. Lucas and the freeholder via the management company ultimately settled on a premium of £5,000 . If the lease had descended lower than eighty years, the premium would have escalated by at least £875.
In 2014 we were contacted by Dr C Dupont who, having bought a basement apartment in Plympton in January 1997. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparable residencies in Plympton with a long lease were valued around £225,400. The mid-range ground rent payable was £45 collected per annum. The lease lapsed in 2090. Taking into account 64 years outstanding we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 exclusive of costs.
Last Spring we were e-mailed by Ms Ashleigh Roberts , who owned a ground floor flat in Plympton in September 2005. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative flats in Plympton with an extended lease were valued about £270,000. The average ground rent payable was £55 collected monthly. The lease terminated in 2101. Taking into account 75 years as a residual term we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.