There is no doubt about it a leasehold property in Mousehole is a wasting asset as a result of the shortening lease. If the residual term has, beyond 100 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Mousehole will meet the qualifying criteria; that being said a conveyancer should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | 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. |
Lease extensions in Mousehole can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Reuben was the the leasehold owner of a conversion apartment in Mousehole on the market with a lease of a few days over fifty eight years remaining. Reuben on an informal basis contacted 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 a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Reuben to invoke his statutory right. Reuben obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mrs Stephanie Torres moved into a ground floor apartment in Mousehole in June 2008. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar flats in Mousehole with 100 year plus lease were in the region of £198,400. The mid-range ground rent payable was £65 collected every twelve months. The lease elapsed on 10 August 2084. Considering the 59 years remaining we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus fees.
Last year we were phoned by Ms U Wilson , who took over the lease of a basement flat in Mousehole in November 2009. The question was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Mousehole with a long lease were worth £255,000. The average amount of ground rent was £50 collected yearly. The lease concluded in 2095. Having 70 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.