Launceston leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Launceston will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Launceston,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Launceston valuers.
Alfie was the the leasehold proprietor of a conversion flat in Launceston on the market with a lease of a little over 61 years left. Alfie on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alfie to invoke his statutory right. Alfie procured expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
In 2009 we were e-mailed by Mr and Mrs. V Vincent who, having acquired a one bedroom apartment in Launceston in September 2003. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Comparable residencies in Launceston with 100 year plus lease were valued about £267,600. The mid-range ground rent payable was £65 billed quarterly. The lease expired on 12 June 2092. Having 67 years left we calculated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including professional charges.
Dr G Moore was assigned a lease of a one bedroom flat in Launceston in October 1995. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar flats in Launceston with a long lease were in the region of £201,200. The mid-range ground rent payable was £55 billed per annum. The lease elapsed in 2081. Having 56 years remaining we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.