Main reasons to commence your Mousehole lease extension

Main reasons to commence your Mousehole lease extension today:

A Mousehole lease depreciates with the years remaining on the lease.

With a long leasehold property in Mousehole, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Residents in Mousehole with a lease approaching 81 years left should seriously think of extending it sooner than later. When a lease has fewer than eighty years remaining, under the relevant Act the landlord can calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.

Mousehole property with a lease extension has roughly the same value as a freehold

It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years in the future.

Lending institutions may not finance a property on a short lease

The trend since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past mortgage companies were content with 25 years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Mousehole lease extensions?

Engaging our service gives you better control over the value of your Mousehole leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Mousehole Lease Extension Case Studies:

Isabella, Mousehole, Cornwall,

Subsequent to unsuccessful negotiations with the freeholder of her ground floor flat in Mousehole, Isabella initiated the lease extension process as the eighty year threshold was swiftly approaching. The legal work completed in June 2010. The freeholder’s costs were kept to an absolute minimum.

Mousehole case:

Last Summer we were called by Ms Leah Lefebvre , who moved into a first floor flat in Mousehole in September 2008. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparable flats in Mousehole with an extended lease were worth £235,200. The mid-range amount of ground rent was £45 collected quarterly. The lease came to a finish on 19 August 2092. Having 66 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.

Mousehole case:

In 2009 we were phoned by Dr Muhammad Hernández who, having completed a one bedroom apartment in Mousehole in January 2010. The question was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical premises in Mousehole with a long lease were in the region of £280,000. The average ground rent payable was £55 collected per annum. The lease end date was in 2103. Having 77 years outstanding we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including expenses.