The market value of a leasehold property in Plymstock depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that formalities can be concluded in advance of the 80 year threshold. Current legislation entitles Plymstock qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of 90 years. The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Plymstock with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 obtain guidance from a lawyer and surveyor with experience in lease extensions.
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.
Last October Hunter, started to get close to the 80-year threshold with the lease on his basement apartment in Plymstock. Having purchased his flat 19 years ago, the length of the lease was of little significance. Thankfully, he realised he would imminently be paying way over the odds for Extending the lease. Hunter arranged for a lease extension just ahead of time last July. Hunter and the landlord ultimately agreed on the final figure of £6,000 . If the lease had gone to less than 80 years, the price would have increased by at least £1,050.
Last year we were e-mailed by Dr Alisha Edwards , who completed a studio apartment in Plymstock in June 2004. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical flats in Plymstock with an extended lease were worth £250,400. The average amount of ground rent was £65 billed per annum. The lease terminated in 2089. Given that there were 64 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 not including professional charges.
In 2009 we were contacted by Mr and Mrs. G Scott who, having completed a purpose-built flat in Plymstock in April 1999. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Similar residencies in Plymstock with a long lease were valued about £189,000. The mid-range amount of ground rent was £55 billed per annum. The lease ended on 1 May 2078. Taking into account 53 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus expenses.