The value of Launceston leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the unexpired lease term is below than eighty years
Leasehold premises in Launceston with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 get guidance from a conveyancer and surveyor 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 a wealth of experience 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.
After unsuccessful correspondence with the landlord of her ground floor flat in Launceston, Molly started the lease extension process as the eighty year mark was quickly nearing. The lease extension was finalised in January 2013. The freeholder’s charges were kept to an absolute minimum.
Mr Riley Moore owned a studio apartment in Launceston in July 2006. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar premises in Launceston with a long lease were worth £205,000. The mid-range ground rent payable was £50 billed annually. The lease finished in 2105. Having 79 years remaining we estimated the compensation to the freeholder for the lease extension to be within £7,600 and £8,800 not including professional charges.
Last Summer we were called by Mr and Mrs. S Dupont , who was assigned a lease of a garden apartment in Launceston in May 2011. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Comparable flats in Launceston with a long lease were in the region of £275,000. The average ground rent payable was £65 billed per annum. The lease ran out in 2094. Given that there were 68 years left we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including professional charges.