As the the remaining lease term of a Launceston domestic lease decreases so does its value and therefore the value of your property. If the lease has, more than one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Launceston will qualify for this right; that being said a lawyer can advise if you qualify for a lease extension. 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.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Launceston leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the freeholder of her first floor flat in Launceston, Georgina started the lease extension process just as her lease was approaching the all-important 80-year deadline. The transaction was finalised in September 2015. The freeholder’s fees were restricted to slightly above 550 pounds.
Mr Evan Smith acquired a first floor apartment in Launceston in August 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Similar properties in Launceston with 100 year plus lease were valued about £184,000. The mid-range amount of ground rent was £55 billed quarterly. The lease termination date was on 24 July 2078. Taking into account 53 years left we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.
Mr and Mrs. F Anderson moved into a purpose-built apartment in Launceston in September 2002. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Identical flats in Launceston with an extended lease were worth £290,000. The average amount of ground rent was £45 billed annually. The lease terminated in 2098. Taking into account 73 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.