Plympton leases on residential properties are gradually losing value. if your lease has about ninety years left, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Plympton will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and steps to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Plympton with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Plympton,the lease extension experts 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.
Tyler owned a studio flat in Plympton being marketed with a lease of a little over 61 years remaining. Tyler informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Tyler to exercise his statutory right. Tyler obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Ms Catherine Lefebvre purchased a studio apartment in Plympton in March 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Comparative homes in Plympton with 100 year plus lease were worth £168,800. The mid-range ground rent payable was £60 collected every twelve months. The lease elapsed on 11 October 2081. Having 55 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including legals.
Last Spring we were contacted by Mr and Mrs. O Roux , who moved into a newly refurbished apartment in Plympton in August 2006. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical premises in Plympton with a long lease were worth £235,200. The average amount of ground rent was £45 billed per annum. The lease lapsed in 2092. Given that there were 66 years left we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including costs.