Launceston leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Launceston residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Launceston you should see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Launceston leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay
Leasehold residencies in Launceston with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Launceston can be a difficult process. We recommend you procure professional help from a lawyer 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.
Following protracted negotiations with the freeholder of her first floor flat in Launceston, Anna commenced the lease extension process as the eighty year deadline was fast approaching. The lease extension was concluded in June 2010. The landlord’s fees were kept to an absolute minimum.
In 2012 we were e-mailed by Mr W Dupont who, having bought a ground floor flat in Launceston in October 2004. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar properties in Launceston with a long lease were valued about £275,000. The mid-range ground rent payable was £65 billed every twelve months. The lease elapsed in 2094. Taking into account 68 years left we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.
Mrs C Pérez took over the lease of a ground floor apartment in Launceston in May 2002. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical premises in Launceston with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 collected quarterly. The lease came to a finish on 24 August 2083. Taking into account 57 years outstanding we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 not including fees.