When it comes to long leasehold property in Plympton, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Leasehold owners in Plympton with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When a lease has below 80 years left, under the current Act the landlord can calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Plympton with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Plympton leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Alex, started to get close to the eighty-year mark with the lease on his two bedroom flat in Plympton. In buying his home 18 years ago, the length of the lease was of no relevance. Thankfully, he recognised he would imminently be paying an inflated amount for a lease extension. Alex extended the lease just under the wire in August. Alex and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If the lease had descended to less than 80 years, the price would have become more exhorbitant by at least £925.
Mr and Mrs. W Howard was assigned a lease of a newly refurbished apartment in Plympton in June 2007. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Similar homes in Plympton with 100 year plus lease were in the region of £176,200. The average ground rent payable was £65 billed yearly. The lease concluded in 2082. Given that there were 56 years outstanding we estimated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus fees.
Last May we were e-mailed by Mrs Jasmine Adams , who acquired a studio apartment in Plympton in February 2012. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar premises in Plympton with an extended lease were worth £242,600. The average amount of ground rent was £45 collected annually. The lease terminated on 4 May 2093. Considering the 67 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 not including professional charges.