Plympton leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term dips under eighty 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 your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Plympton will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain situations you may not be entitled. There are also strict deadlines and formalities to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Plympton with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Leeds Building Society | |
| Santander | |
| Yorkshire Building Society |
The conveyancing solicitors that we work with undertake Plympton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Gabriel owned a conversion flat in Plympton being sold with a lease of just over fifty eight years unexpired. Gabriel informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Summer we were contacted by Mr and Mrs. K Jones , who took over the lease of a basement apartment in Plympton in March 2009. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Comparative premises in Plympton with a long lease were valued around £218,000. The mid-range amount of ground rent was £45 collected monthly. The lease expiry date was in 2089. Having 63 years remaining we estimated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 plus costs.
In 2011 we were phoned by Mr and Mrs. V Khan who, having took over the lease of a studio apartment in Plympton in January 1998. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable premises in Plympton with 100 year plus lease were in the region of £265,000. The average ground rent payable was £50 billed yearly. The lease elapsed on 8 June 2100. Considering the 74 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.