Plympton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Plympton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Plympton you would be well advised to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 in-depth market knowledge and the close ties they enjoy with Plympton valuers.
Following protracted discussions with the freeholder of her garden flat in Plympton, Rhiannon started the lease extension process just as the lease was coming close to the all-important 80-year threshold. The legal work completed in April 2005. The landlord’s costs were kept to an absolute minimum.
In 2014 we were called by Dr V Hernández who, having owned a basement apartment in Plympton in May 1997. We are asked if we could estimate the premium could be to extend the lease by an additional years. Identical residencies in Plympton with an extended lease were worth £260,000. The average amount of ground rent was £50 collected yearly. The lease terminated in 2096. Considering the 72 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.
In 2011 we were approached by Mr and Mrs. G Thomas who, having moved into a basement apartment in Plympton in April 2000. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Identical properties in Plympton with an extended lease were valued around £256,600. The average ground rent payable was £60 collected every twelve months. The lease elapsed in 2076. Given that there were 52 years as a residual term we approximated the premium to the landlord for the lease extension to be between £39,000 and £45,000 plus expenses.