Unfortunately that a Mousehole residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Mousehole property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining dips below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Mousehole will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Retaining our service will provide you increased control over the value of your Mousehole leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the freeholder of her ground floor flat in Mousehole, Ashleigh initiated the lease extension process as the 80 year mark was rapidly approaching. The transaction was concluded in September 2006. The freeholder’s fees were restricted to below four hundred GBP.
Mr Charlie Johnson took over the lease of a purpose-built flat in Mousehole in May 1999. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable premises in Mousehole with 100 year plus lease were in the region of £246,800. The average amount of ground rent was £60 invoiced quarterly. The lease finished in 2076. Taking into account 50 years as a residual term we estimated the premium to the landlord for the lease extension to be between £44,700 and £51,600 plus costs.
In 2012 we were approached by Mr and Mrs. D Richardson who, having acquired a one bedroom flat in Mousehole in February 2007. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Similar premises in Mousehole with an extended lease were in the region of £208,200. The average ground rent payable was £65 invoiced quarterly. The lease ran out on 15 August 2087. Considering the 61 years outstanding we estimated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of professional charges.