The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Launceston can extend the lease for an additional ninety years in accordance with statute. Do give careful consideration before delaying your Launceston lease extension. Shelving that expense today simply escalates the price you will eventually have to pay to extend the lease.
Leasehold premises in Launceston with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Launceston leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the freeholder of her first floor apartment in Launceston, Jordan commenced the lease extension process just as her lease was coming close to the all-important eighty-year mark. The legal work was finalised in September 2012. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. H Moreau bought a recently refurbished apartment in Launceston in June 2010. The question was if we could approximate the premium could be to extend the lease by ninety years. Identical properties in Launceston with an extended lease were worth £300,000. The average ground rent payable was £50 billed every twelve months. The lease ended in 2102. Taking into account 76 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
In 2013 we were called by Mr Sam Martínez who, having owned a newly refurbished apartment in Launceston in March 2012. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Identical premises in Launceston with a long lease were worth £252,800. The average amount of ground rent was £65 invoiced every twelve months. The lease ran out in 2091. Given that there were 65 years as a residual term we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of fees.