Main reasons to start your Plympton lease extension

Top reasons for lease extension now:

A Plympton leasehold property depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Plympton. Inevitably, the period of lease remaining reduces over time. This may pass by relatively unnoticed when the property needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Plympton have the legal entitlement to extend the lease for a further 90 years in accordance with statute. Please give careful attention before delaying your Plympton lease extension. Holding off that expense now likely increases the price you will ultimately have to pay for a lease extension

An extended lease is almost the same value as a freehold

Leasehold premises in Plympton with over 100 years outstanding 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 freehold unless savings on ground rent and estate charges merit it.

Banks and Building Societies may not finance a property on a short lease

Most banks and building societies insist on a lengthy amount of time remaining on any leasehold property before they will contemplate it as adequate security. Regardless of whether you require a mortgage, you should keep in mind that it is likely that someone wanting to buy your property in the future might well do, so in the event that they can't obtain a mortgage, then the market price of the property could be adversely impacted. In the last decade the majority of banks and building societies have increased the required minimum lease length that they are prepared to accept

What makes us experts in Plympton lease extensions?

Regardless of whether you are a tenant or a landlord in Plympton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Plympton valuers.

Plympton Lease Extension Example Cases:

Luke, Plympton, Devon

Last October Luke, started to get near to the 80-year threshold with the lease on his studio flat in Plympton. Having purchased his property two decades ago, the length of the lease was of no significance. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Luke arranged for a lease extension just under the wire last September. Luke and the freeholder eventually settled on sum of £5,500 . If the lease had slid lower than 80 years, the figure would have become more costly by a minimum £850.

Plympton case:

Dr K Evans was assigned a lease of a one bedroom apartment in Plympton in April 2012. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparative homes in Plympton with an extended lease were valued about £193,400. The average amount of ground rent was £65 collected every twelve months. The lease elapsed in 2085. Considering the 59 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of expenses.

Plympton case:

Ms L Williams bought a purpose-built flat in Plympton in June 2011. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Identical homes in Plympton with a long lease were valued around £255,000. The average amount of ground rent was £50 collected yearly. The lease ended in 2096. Having 70 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.