As the length of the unexpired term of a Plymstock residential lease decreases so does its value and therefore the value of your property. If the residual term has, more than 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Plymstock will qualify for this right; however a lawyer should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Plymstock with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
Lender | Requirement |
---|---|
Accord Mortgages | 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. |
Coventry Building Society | 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. |
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 |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Plymstock,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Plymstock valuers.
Last year Nathaniel, started to get near to the eighty-year threshold with the lease on his two bedroom apartment in Plymstock. In buying his property two decades ago, the lease term was of little concern. Thankfully, he realised he would soon be paying an inflated amount for a lease extension. Nathaniel arranged for a lease extension just ahead of time last April. Nathaniel and the landlord eventually settled on an amount of £6,000 . If he had missed the deadline, the sum would have become more exhorbitant by a minimum £875.
In 2009 we were phoned by Mr and Mrs. C Nguyen who, having took over the lease of a ground floor apartment in Plymstock in July 2006. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Plymstock with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £45 billed monthly. The lease lapsed on 27 October 2093. Given that there were 69 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.
In 2010 we were phoned by Dr Georgina Moreau who, having owned a studio flat in Plymstock in February 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparative premises in Plymstock with an extended lease were valued about £216,000. The mid-range ground rent payable was £60 invoiced monthly. The lease terminated in 2082. Taking into account 58 years left we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus fees.