Mousehole leases on domestic deteriorating in value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Mousehole will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not qualify. There are also strict timetables and steps to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Mousehole with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Lease extensions in Mousehole can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Mousehole lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Cameron owned a 2 bedroom flat in Mousehole being marketed with a lease of a few days over 61 years left. Cameron on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Cameron to exercise his statutory right. Cameron obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Last year we were contacted by Mrs Paige Cox , who purchased a ground floor apartment in Mousehole in May 1995. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Comparative flats in Mousehole with a long lease were in the region of £260,000. The average amount of ground rent was £50 billed yearly. The lease ran out on 25 January 2097. Given that there were 72 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Last year we were approach by Dr F Miller , who was assigned a lease of a one bedroom apartment in Mousehole in August 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Comparable residencies in Mousehole with an extended lease were valued about £261,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease lapsed on 12 November 2077. Considering the 52 years left we approximated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 exclusive of professional charges.