Mousehole leases on domestic deteriorating in value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease drops lower than 80 years - otherwise a higher premium will be due. Flat owners in Mousehole will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain cases you may not qualify. There are prescribed timetables and steps to comply with once the process has commenced so it’s best to be guided by a lawyer during the process.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Mousehole,the lease extension solicitors 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 Mousehole valuers.
After unsuccessful negotiations with the landlord of her garden apartment in Mousehole, Daisy commenced the lease extension process just as the lease was coming close to the critical 80-year threshold. The transaction was concluded in October 2005. The freeholder’s fees were negotiated to less than 450 pounds.
Last Autumn we were approach by Mr and Mrs. L Davis , who acquired a studio flat in Mousehole in October 2008. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable residencies in Mousehole with an extended lease were valued about £250,000. The average amount of ground rent was £50 invoiced annually. The lease came to a finish in 2094. Given that there were 69 years remaining we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
In 2014 we were e-mailed by Ms Sophie Johnson who, having moved into a first floor flat in Mousehole in October 2012. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative premises in Mousehole with a long lease were valued about £290,000. The mid-range amount of ground rent was £60 invoiced per annum. The lease concluded on 22 May 2105. Given that there were 80 years outstanding we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.