Top reasons for Launceston lease extension

Top reasons for lease extension now:

Increase your lease and increase your Launceston property value

As the length of the unexpired term of a Launceston domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, in excess of 100 years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner as opposed to later. The majority of flat owners in Launceston will meet the qualifying criteria; however a conveyancing solicitor can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for decades to come.

Lenders may not lend with a short lease

Lenders are making their criteria more stringent and a meaningful number now require flats to have at least sixty if not seventy years left at the expiry of the mortgage. As many flats in Launceston were built in the 1950s, 1960s and 1970s as a result many now need to be extended if they wish to obtain a mortgage.

Get in touch with one of our Launceston lease extension solicitors or enfranchisement solicitors

Using our service gives you enhanced control over the value of your Launceston leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Launceston Lease Extension Example Cases:

Noah, Launceston, Cornwall,

Noah owned a studio flat in Launceston being sold with a lease of fraction over fifty eight years left. Noah on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Noah to exercise his statutory right. Noah procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.

Launceston case:

In 2014 we were e-mailed by Mr and Mrs. N Rogers who, having bought a purpose-built apartment in Launceston in February 2007. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Similar premises in Launceston with an extended lease were valued around £208,600. The average ground rent payable was £60 billed every twelve months. The lease elapsed on 10 October 2083. Taking into account 57 years remaining we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of professional charges.

Launceston case:

Mrs K Ward acquired a purpose-built flat in Launceston in February 2010. We are asked if we could approximate the price would be for a 90 year lease extension. Comparable properties in Launceston with an extended lease were valued around £200,000. The average ground rent payable was £50 invoiced every twelve months. The lease expired in 2103. Having 77 years left we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.