Launceston leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the existing lease drops lower than 80 years - otherwise a higher premium will be payable. Flat owners in Launceston will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not qualify. There are prescribed deadlines and formalities to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service will provide you enhanced control over the value of your Launceston leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of unsuccessful negotiations with the freeholder of her two bedroom flat in Launceston, Natalie started the lease extension process just as her lease was nearing the crucial 80-year threshold. The transaction completed in September 2011. The landlord’s charges were restricted to a tad over five hundred GBP.
Last Winter we were contacted by Dr I André , who completed a basement flat in Launceston in February 2000. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar premises in Launceston with an extended lease were worth £295,000. The average ground rent payable was £45 billed yearly. The lease elapsed in 2101. Taking into account 75 years left we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.
Dr Toby David acquired a purpose-built apartment in Launceston in August 2006. We are asked if we could approximate the premium would be to extend the lease by an additional years. Identical flats in Launceston with a long lease were worth £250,400. The average amount of ground rent was £65 billed quarterly. The lease came to a finish on 13 March 2090. Taking into account 64 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of professional charges.