Launceston leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Launceston residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Launceston you really ought to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Launceston with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| Nationwide Building Society | |
| Skipton Building Society | |
| TSB |
The conveyancers that we work with handle Launceston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Logan was the the leasehold proprietor of a 2 bedroom flat in Launceston being marketed with a lease of just over 72 years remaining. Logan on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Logan to invoke his statutory right. Logan procured expert advice and secured satisfactory resolution without resorting to tribunal and sell the property.
Ms Isabella Harris acquired a one bedroom apartment in Launceston in November 2012. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar homes in Launceston with a long lease were worth £200,000. The mid-range ground rent payable was £50 billed yearly. The lease elapsed in 2103. Having 77 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.
In 2011 we were contacted by Mr and Mrs. T Rogers who, having bought a purpose-built flat in Launceston in February 2001. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Launceston with an extended lease were in the region of £260,200. The average amount of ground rent was £65 billed monthly. The lease concluded on 14 March 2092. Having 66 years unexpired we approximated the premium to the landlord for the lease extension to be within £16,200 and £18,600 not including professional charges.