Main reasons to start your Mousehole lease extension

Why you should start your Mousehole lease extension today:

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

The re-sale value of a leasehold property in Mousehole is impacted by how long the lease has left to run. If it is near to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. Ideally one should start the lease extension process when the lease still has 82 years remaining so that formalities can be finalised ahead of the 80 year cut off point. Current legislation entitles Mousehole qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

Mousehole property with a lease extension is almost the same value as a freehold

Leasehold residencies in Mousehole with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.

Banks and Building Societies may decide not to finance a property with a short lease

Most high street banks are tightening their criteria and many now expect flats to have a minimum of sixty if not seventy years left at the end of the mortgage. As many flats in Mousehole were built in the 1950s, 1960s and 1970s this means many now require lease extensions if they wish to obtain a mortgage.

Get in touch with one of our Mousehole lease extension solicitors or enfranchisement solicitors

Engaging our service gives you better control over the value of your Mousehole leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Mousehole Lease Extension Case Summaries:

Alexander, Mousehole, Cornwall

Last October Alexander, started to get near to the eighty-year mark with the lease on his leasehold apartment in Mousehole. Having purchased his home two decades ago, the lease term was of no significance. Thankfully, he noticed he would soon be paying an escalated premium for a lease extension. Alexander was able to extend his lease just ahead of time last July. Alexander and the freeholder subsequently agreed on sum of £6,000 . If the lease had gone below eighty years, the amount would have increased by a minimum £925.

Mousehole case:

In 2009 we were contacted by Dr R Anderson who, having moved into a basement flat in Mousehole in October 2009. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable homes in Mousehole with a long lease were valued about £270,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease expired on 12 February 2100. Considering the 74 years left we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.

Mousehole case:

In 2012 we were called by Ms T Hernández who, having completed a purpose-built apartment in Mousehole in November 2003. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical premises in Mousehole with an extended lease were valued around £166,400. The mid-range amount of ground rent was £60 billed per annum. The lease finished in 2080. Having 54 years left we approximated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of legals.