The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Launceston have the right to extend the lease for a further 90 years under statute. Do think carefully before delaying your Launceston lease extension. Shelving the costs now simply increases the premium you will ultimately have to pay for a lease extension.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Launceston can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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.
In recent months Liam, came dangerously close to the eighty-year threshold with the lease on his one bedroom apartment in Launceston. Having purchased his property 18 years previously, the unexpired term was of minimal bearing. As luck would have it, he became aware that he would soon be paying an escalated premium for Extending the lease. Liam arranged for a lease extension at the eleventh hour in April. Liam and the landlord ultimately settled on a premium of £6,000 . If the lease had slipped below 80 years, the amount would have increased by at least £900.
Mrs E Laurent acquired a one bedroom flat in Launceston in November 2007. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Similar premises in Launceston with a long lease were worth £181,600. The mid-range amount of ground rent was £55 collected yearly. The lease elapsed on 13 January 2078. Considering the 52 years outstanding we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus legals.
In 2009 we were called by Dr Y Peterson who, having bought a studio flat in Launceston in June 1998. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Similar flats in Launceston with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease lapsed on 19 February 2098. Considering the 72 years remaining we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.