Plympton leases on residential deteriorating in value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Plympton will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some cases you may not be entitled. There are also strict deadlines and steps to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Santander |
Retaining our service gives you increased control over the value of your Plympton leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Ryan, started to get near to the eighty-year mark with the lease on his ground floor flat in Plympton. Having purchased his property twenty years previously, the lease term was of minimal concern. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Ryan arranged for a lease extension just ahead of time in April. Ryan and the landlord who owned the flat above eventually agreed on sum of £5,000 . If the lease had slid to less than eighty years, the amount would have increased by at least £850.
Mr and Mrs. C Clark purchased a studio apartment in Plympton in February 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Plympton with an extended lease were in the region of £270,000. The average amount of ground rent was £55 billed per annum. The lease end date was in 2101. Having 75 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
In 2014 we were e-mailed by Mr N Kelly who, having moved into a one bedroom flat in Plympton in August 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Plympton with 100 year plus lease were valued around £168,800. The mid-range amount of ground rent was £60 collected per annum. The lease lapsed in 2081. Taking into account 55 years left we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of costs.