Why you should commence your Launceston lease extension

Top reasons for lease extension now:

Increase your lease and increase your Launceston property value

Launceston residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.

Launceston property with a lease extension is almost the same value as a freehold

Leasehold properties in Launceston with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.

Lending institutions may not grant a mortgage with a short lease

Mortgage companies are really restricting their approach as regards to properties in Launceston with short leases. For example you might discover that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so if you wanted to sell, your remaining options would be to find a cash purchaser, or hope for the best at auction thus restricting your market.

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

Engaging our service gives you enhanced control over the value of your Launceston leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers 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:

William, Launceston, Cornwall

Half a year ago William, started to get close to the eighty-year threshold with the lease on his ground floor flat in Launceston. Having bought his property 18 years ago, the unexpired term was of minimal bearing. Thankfully, he became aware that he would imminently be paying way over the odds for a lease extension. William extended the lease just under the wire in September. William and the landlord who owned the flat above ultimately settled on the final figure of £6,000 . If the lease had fallen lower than 80 years, the price would have gone up by at least £950.

Launceston case:

Last Summer we were contacted by Mrs W Richardson , who bought a purpose-built apartment in Launceston in January 2009. We are asked if we could estimate the price could be for a ninety year lease extension. Comparative properties in Launceston with 100 year plus lease were valued about £252,800. The average amount of ground rent was £65 invoiced per annum. The lease terminated in 2091. Given that there were 65 years unexpired we estimated the premium to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of professional charges.

Launceston case:

In 2009 we were approached by Mr Y François who, having moved into a first floor apartment in Launceston in July 2003. The dilemma was if we could estimate the price would be for a ninety year lease extension. Similar flats in Launceston with a long lease were worth £191,400. The average ground rent payable was £55 billed every twelve months. The lease came to a finish on 27 May 2080. Having 54 years remaining we estimated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 not including professional charges.