Mousehole leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Mousehole tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Mousehole you really ought to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in Mousehole with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
The conveyancing solicitors that we work with undertake Mousehole lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to lengthy negotiations with the freeholder of her garden apartment in Mousehole, Ella initiated the lease extension process just as her lease was approaching the crucial 80-year threshold. The transaction was finalised in September 2015. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were phoned by Mr and Mrs. T Anderson who, having took over the lease of a studio flat in Mousehole in June 2005. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Comparable residencies in Mousehole with a long lease were worth £254,200. The mid-range amount of ground rent was £60 billed annually. The lease concluded in 2075. Considering the 51 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 not including fees.
Ms P Nguyen took over the lease of a basement flat in Mousehole in September 1995. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparable flats in Mousehole with 100 year plus lease were worth £210,600. The average ground rent payable was £45 billed quarterly. The lease lapsed on 7 September 2086. Given that there were 62 years remaining we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of expenses.