The market value of a leasehold property in Mousehole is impacted by how many years the lease has left to run. If it is close to or fewer than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that all matters can be concluded ahead of the eighty year threshold. Current legislation enables Mousehole qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Mousehole with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.
After protracted discussions with the landlord of her studio flat in Mousehole, Alisha commenced the lease extension process just as her lease was approaching the all-important 80-year threshold. The legal work completed in June 2005. The freeholder’s fees were kept to an absolute minimum.
Last Summer we were approach by Mrs J Watson , who bought a one bedroom flat in Mousehole in November 1998. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable premises in Mousehole with a long lease were worth £270,000. The average ground rent payable was £55 invoiced per annum. The lease came to a finish on 28 August 2099. Taking into account 75 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
In 2009 we were approached by Dr Max Clark who, having owned a recently refurbished flat in Mousehole in January 2012. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Identical homes in Mousehole with an extended lease were in the region of £173,800. The mid-range amount of ground rent was £65 billed quarterly. The lease ran out in 2079. Considering the 55 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of costs.