It’s a harsh certainty that a Launceston residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Launceston property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining drops below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Launceston will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold properties in Launceston with more than one hundred years remaining 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 to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Lease extensions in Launceston can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Launceston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Noah, came very near to the eighty-year threshold with the lease on his basement apartment in Launceston. In buying his home two decades ago, the lease term was of no bearing. As luck would have it, he recognised he would imminently be paying an inflated amount for Extending the lease. Noah extended the lease just under the wire last August. Noah and the landlord in the end settled on a premium of £5,500 . If the lease had fallen below eighty years, the amount would have increased by at least £1,000.
Last Summer we were phoned by Dr F Gunderson , who bought a ground floor flat in Launceston in November 1999. The dilemma was if we could approximate the price could be to prolong the lease by 90 years. Similar homes in Launceston with an extended lease were worth £233,200. The average ground rent payable was £60 billed yearly. The lease end date was in 2087. Given that there were 61 years remaining we approximated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 plus professional charges.
In 2012 we were contacted by Dr Henry Leroy who, having purchased a one bedroom flat in Launceston in February 1998. We are asked if we could approximate the price would be to prolong the lease by a further 90 years. Comparable homes in Launceston with 100 year plus lease were in the region of £166,800. The mid-range amount of ground rent was £50 collected monthly. The lease lapsed in 2076. Considering the 50 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 not including costs.