The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Mousehole may extend the lease for an additional 90 years in accordance with statute. Please think carefully before delaying your Mousehole lease extension. Putting off the costs today simply increases the price you will eventually have to pay to extend the lease.
It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Mousehole,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mousehole valuers.
During the course of the last few months Dexter, came perilously close to the 80-year threshold with the lease on his first floor flat in Mousehole. Having purchased his flat 19 years ago, the lease term was of no importance. Luckily, he noticed he needed to take steps soon on a lease extension. Dexter was able to extend his lease just under the wire in January. Dexter and the freeholder ultimately agreed on a premium of £6,000 . If he failed to meet the deadline, the premium would have increased by a minimum £950.
Last Christmas we were phoned by Mr Jude Rodríguez , who completed a basement flat in Mousehole in November 2004. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in Mousehole with a long lease were valued around £200,800. The mid-range amount of ground rent was £65 invoiced yearly. The lease concluded in 2086. Considering the 60 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including professional charges.
Last Autumn we were phoned by Mr James Young , who purchased a garden apartment in Mousehole in September 1995. We are asked if we could estimate the price would be for a ninety year lease extension. Identical homes in Mousehole with 100 year plus lease were valued around £260,000. The average ground rent payable was £50 invoiced annually. The lease elapsed in 2097. Having 71 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.