Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Plympton. Inevitably, the term of lease left shortens as time goes by. This is often overlooked and only becomes a problem when the property has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Plympton have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give due consideration before delaying your Plympton lease extension. Holding off that expense now only increases the price you will ultimately have to pay to extend your lease
Leasehold premises in Plympton with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Birmingham Midshires | |
| Leeds Building Society | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a freeholder in Plympton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Plympton valuers.
Edward was the the leasehold proprietor of a studio apartment in Plympton on the market with a lease of just over fifty eight years unexpired. Edward on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Edward to invoke his statutory right. Edward procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
Dr C Baker purchased a purpose-built apartment in Plympton in July 2010. The dilemma was if we could approximate the price could be to prolong the lease by a further 90 years. Identical properties in Plympton with an extended lease were in the region of £242,600. The mid-range ground rent payable was £45 invoiced yearly. The lease lapsed on 12 April 2093. Having 67 years remaining we approximated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus legals.
Ms C Jones owned a first floor flat in Plympton in April 2004. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Plympton with a long lease were worth £280,000. The average amount of ground rent was £55 invoiced per annum. The lease expiry date was on 5 September 2104. Considering the 78 years remaining we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.