There is no doubt about it a leasehold flat or house in Plymstock is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 99 years to run then this decrease may be negligible however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner rather than later. Many flat owners in Plymstock will meet the qualifying criteria; that being said a lawyer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire Building Society | 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. |
The conveyancers that we work with undertake Plymstock 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 conveyancing solicitor we work with provide it.
Half a year ago Jacob, started to get close to the eighty-year threshold with the lease on his ground floor flat in Plymstock. Having bought his property 18 years ago, the lease term was of little bearing. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Jacob was able to extend his lease just ahead of time last March. Jacob and the landlord who owned the flat above in the end settled on an amount of £6,000 . If he not met the deadline, the figure would have escalated by a minimum £950.
Dr I Lambert completed a studio apartment in Plymstock in July 2009. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar homes in Plymstock with an extended lease were worth £280,000. The average amount of ground rent was £45 billed annually. The lease terminated on 3 February 2095. Having 70 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
In 2009 we were called by Mr and Mrs. J Bennett who, having was assigned a lease of a newly refurbished flat in Plymstock in June 1996. The question was if we could estimate the price could be to extend the lease by a further 90 years. Identical flats in Plymstock with a long lease were worth £223,400. The mid-range ground rent payable was £60 invoiced annually. The lease ran out in 2084. Given that there were 59 years unexpired we approximated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of costs.