Plympton leases on residential properties are gradually losing value. if your lease has about 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the current lease dips lower than eighty years - otherwise a higher amount will be payable. Leasehold owners in Plympton will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and steps to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with procure Plympton 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.
14 months ago Harvey, came dangerously near to the 80-year mark with the lease on his leasehold flat in Plympton. In buying his property two decades ago, the length of the lease was of no bearing. Luckily, he noticed he needed to take steps soon on Extending the lease. Harvey arranged for a lease extension just ahead of time in September. Harvey and the landlord ultimately settled on a premium of £5,500 . If he not met the deadline, the price would have increased by a minimum £850.
Dr I Martínez moved into a basement flat in Plympton in January 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Plympton with an extended lease were in the region of £264,000. The mid-range amount of ground rent was £60 invoiced quarterly. The lease came to a finish on 19 September 2079. Given that there were 53 years remaining we calculated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of costs.
In 2012 we were contacted by Ms R Roberts who, having acquired a purpose-built apartment in Plympton in February 1995. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative homes in Plympton with a long lease were in the region of £225,400. The average ground rent payable was £45 billed every twelve months. The lease came to a finish on 18 August 2090. Given that there were 64 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 not including professional charges.