The only way is down when it comes to Plymstock lease terms. Plymstock properties that have a residual term shorter than 80 years will drop in value even faster, and the cost to extend your lease will go up.
Leasehold premises in Plymstock with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Plymstock can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Plymstock lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Tyler owned a studio flat in Plymstock on the market with a lease of just over 61 years left. Tyler on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Tyler to invoke his statutory right. Tyler obtained expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last month we were called by Mr Callum Harris , who acquired a one bedroom apartment in Plymstock in July 2001. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable flats in Plymstock with a long lease were in the region of £208,600. The average amount of ground rent was £60 billed annually. The lease concluded on 18 January 2083. Having 57 years remaining we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 plus professional charges.
In 2009 we were called by Dr Dylan Sharif who, having purchased a purpose-built apartment in Plymstock in May 1995. The question was if we could approximate the premium could be for a 90 year lease extension. Identical premises in Plymstock with an extended lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease came to a finish on 13 August 2103. Considering the 77 years unexpired we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.