Chances are that if you own a flat in Mousehole you actually own a long leasehold interest over your property
Leasehold premises in Mousehole with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Mousehole,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mousehole valuers.
Off the back of lengthy negotiations with the freeholder of her two bedroom flat in Mousehole, Mollie started the lease extension process as the eighty year threshold was swiftly advancing. The transaction was finalised in May 2009. The freeholder’s costs were kept to an absolute minimum.
Ms Jade Parker acquired a ground floor flat in Mousehole in February 2007. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparable premises in Mousehole with a long lease were worth £260,000. The average ground rent payable was £50 invoiced per annum. The lease ended on 20 July 2097. Given that there were 71 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
In 2011 we were phoned by Mr and Mrs. L Petit who, having completed a newly refurbished flat in Mousehole in September 2004. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative residencies in Mousehole with a long lease were worth £254,200. The mid-range ground rent payable was £60 collected monthly. The lease came to a finish in 2077. Given that there were 51 years outstanding we approximated the premium to the landlord for the lease extension to be within £43,700 and £50,600 plus expenses.