When it comes to residential leasehold premises in Launceston, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Leasehold owners in Launceston with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once a lease has under 80 years left, under the relevant Act the landlord is entitled to calculate and levy a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service gives you enhanced control over the value of your Launceston leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful correspondence with the landlord of her purpose-built flat in Launceston, Kayleigh initiated the lease extension process just as her lease was approaching the all-important 80-year deadline. The transaction was finalised in September 2013. The freeholder’s costs were restricted to below 650 pounds.
Mrs V Thomas moved into a one bedroom flat in Launceston in April 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Launceston with a long lease were worth £225,800. The average amount of ground rent was £60 invoiced monthly. The lease terminated on 2 February 2086. Given that there were 60 years unexpired we approximated the premium to the landlord for the lease extension to be within £25,700 and £29,600 not including costs.
In 2014 we were phoned by Mr and Mrs. U Mitchell who, having was assigned a lease of a garden flat in Launceston in April 2009. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparable homes in Launceston with 100 year plus lease were valued around £210,000. The average ground rent payable was £50 invoiced quarterly. The lease lapsed on 19 April 2106. Taking into account 80 years left we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.