The only way is down when it comes to Mousehole lease terms. Mousehole flats that have a lease term fewer than eighty years will drop in value at a rapid rate, and the cost of extending your lease will increase.
Leasehold residencies in Mousehole with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service gives you increased control over the value of your Mousehole leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
George was the the leasehold proprietor of a high value flat in Mousehole on the market with a lease of a little over fifty eight years outstanding. George informally approached his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be payable on a lease extension were George to exercise his statutory right. George procured expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
Mr and Mrs. J Fournier purchased a studio flat in Mousehole in February 2005. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar residencies in Mousehole with an extended lease were in the region of £250,000. The average ground rent payable was £50 billed yearly. The lease concluded in 2094. Given that there were 68 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Last February we were e-mailed by Mr P Girard , who completed a first floor apartment in Mousehole in August 2006. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Identical flats in Mousehole with an extended lease were worth £285,000. The mid-range ground rent payable was £55 invoiced yearly. The lease finished on 10 April 2105. Taking into account 79 years left we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.