Why you should start your Launceston lease extension

Top reasons for lease extension now:

Increase your lease and increase your Launceston property value

Launceston leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Launceston residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Launceston you really ought to check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold properties in Launceston with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.

Lenders may decide not to loan monies with a short lease

Mortgage companies will not grant a mortgage on short residential leases. You are likely to encounter problems if you need to sell your flat in Launceston if the unexpired term of your lease is below the criteria set by most lenders. Different lenders have varying criteria but on the whole they are looking for an unexpired term of at least seventy years.

Why use us for your lease extension in Launceston?

Regardless of whether you are a tenant or a freeholder in Launceston,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Launceston valuers.

Launceston Lease Extension Case Summaries:

Eli, Launceston, Cornwall,

Eli was the the leasehold proprietor of a high value flat in Launceston being marketed with a lease of fraction over sixty years left. Eli on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Eli to exercise his statutory right. Eli obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.

Launceston case:

In 2009 we were e-mailed by Mr and Mrs. A Harris who, having moved into a recently refurbished flat in Launceston in October 1998. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Similar residencies in Launceston with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 billed quarterly. The lease elapsed on 27 October 2099. Having 73 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.

Launceston case:

In 2010 we were phoned by Mr and Mrs. N Ali who, having completed a garden apartment in Launceston in January 1996. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar homes in Launceston with 100 year plus lease were worth £235,600. The mid-range ground rent payable was £60 invoiced per annum. The lease elapsed on 28 September 2088. Considering the 62 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including legals.