Mousehole leases on domestic deteriorating in value. Where your lease has about ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the existing lease drops under 80 years - otherwise a higher amount will be due. Flat owners in Mousehole will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not be entitled. There are also strict deadlines and steps to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Mousehole with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Mousehole,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mousehole valuers.
Last October Arthur, started to get close to the eighty-year mark with the lease on his leasehold flat in Mousehole. Having purchased his flat 19 years ago, the unexpired term was of minimal significance. As luck would have it, he noticed he would soon be paying an escalated premium for Extending the lease. Arthur was able to extend his lease at the eleventh hour in August. Arthur and the freeholder via the managing agents ultimately agreed on sum of £5,500 . If he had missed the deadline, the figure would have escalated by a minimum £900.
In 2012 we were contacted by Ms Emma Cooper who, having moved into a one bedroom apartment in Mousehole in July 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Mousehole with a long lease were worth £264,000. The mid-range amount of ground rent was £60 collected monthly. The lease lapsed in 2078. Considering the 53 years left we calculated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 plus fees.
In 2011 we were phoned by Mr and Mrs. F Scott who, having purchased a newly refurbished apartment in Mousehole in January 2009. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Similar premises in Mousehole with an extended lease were valued around £225,400. The mid-range amount of ground rent was £45 invoiced yearly. The lease came to a finish in 2089. Having 64 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 plus professional charges.