Main reasons to commence your Mousehole lease extension

Why you should start your Mousehole lease extension today:

A Mousehole lease depreciates with the years remaining on the lease.

The only way is down when it comes to Mousehole lease terms. Mousehole flats that have a lease term less than than 80 years will de-escalate in value even faster, and the cost of extending your lease will increase.

Mousehole property with a lease extension has roughly the same value as a freehold

It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same 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.

Lending institutions may not grant a mortgage with a short lease

The propensity since 2008 has been for banks to tighten lending requirements generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by mortgage companies has increased. Historically mortgage companies were content with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

Why use us for your lease extension in Mousehole?

The lawyers that we work with handle Mousehole lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Mousehole Lease Extension Example Cases:

Adam, Mousehole, Cornwall,

Adam owned a studio apartment in Mousehole on the market with a lease of just over fifty eight years unexpired. Adam informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Adam to invoke his statutory right. Adam obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.

Mousehole case:

Last Christmas we were phoned by Dr Y Bell , who bought a one bedroom flat in Mousehole in July 2007. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Mousehole with 100 year plus lease were in the region of £210,600. The mid-range ground rent payable was £45 collected quarterly. The lease lapsed in 2088. Considering the 62 years left we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including costs.

Mousehole case:

Mrs C Morris completed a purpose-built apartment in Mousehole in November 2005. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable residencies in Mousehole with an extended lease were valued about £265,000. The mid-range amount of ground rent was £50 collected annually. The lease finished on 12 May 2099. Having 73 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.