When it comes to long leasehold property in Plympton, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Anyone in Plympton with a lease drawing near to 81 years remaining should seriously consider extending it without delay. Once the lease term has below 80 years remaining, under the current Act the landlord can calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Plympton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Plympton valuers.
Elijah was the the leasehold proprietor of a high value flat in Plympton on the market with a lease of a little over 72 years outstanding. Elijah on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Elijah to invoke his statutory right. Elijah procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Ms Alicia Dupont moved into a purpose-built flat in Plympton in March 1997. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Plympton with 100 year plus lease were worth £227,800. The average ground rent payable was £45 billed every twelve months. The lease expired in 2090. Having 65 years left we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including professional charges.
Mr and Mrs. E Turner was assigned a lease of a studio apartment in Plympton in March 2011. The question was if we could estimate the premium would be to prolong the lease by 90 years. Comparative homes in Plympton with a long lease were worth £275,000. The average ground rent payable was £55 collected per annum. The lease ended in 2101. Having 76 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.